SaaStr · 2015-10-19 · 3880d

The Reality of Tech Funding: VC Capital Distribution and the Series A Crunch

Jason Lemkin addresses misconceptions about tech fundraising prevalence, arguing that while headline numbers appear shocking, the actual number of venture-backed early-stage startups hasn't increased dramatically. The apparent surge is driven by larger round sizes, higher valuations, and increased capital in later-stage rounds rather than more startups receiving funding.

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Metrics in this report

Angel Capital Growth

10x

multiple

true angel investing relative to prior period

VC Capital Growth

50%

increase

venture capital firms as asset class over recent years

VC Investment Frequency per Partner

1-3investments

range

per partner per year at typical VC firms

Valuation Appreciation

50%

increase

startup valuations over recent years