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.
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