{"id":2084,"date":"2019-03-04T18:05:04","date_gmt":"2019-03-04T12:35:04","guid":{"rendered":"https:\/\/pitch.link\/blog\/?p=2084"},"modified":"2019-06-07T18:15:12","modified_gmt":"2019-06-07T12:45:12","slug":"where-in-the-funding-lifecycle-do-startups-begin-to-lose-traction","status":"publish","type":"post","link":"https:\/\/pitch.link\/blog\/where-in-the-funding-lifecycle-do-startups-begin-to-lose-traction\/","title":{"rendered":"Where in the funding lifecycle do startups begin to lose traction?"},"content":{"rendered":"\n

In a report CBInsights analyzed 1100 startups (that raised seed rounds in 2008-2010) to answer exactly that question. Post seed funding 67% startups stall at some point, fail to raise or exit (unless they become self sustaining but unattractive for investors). <\/p>\n\n\n\n\n\n\n\n

Bottomline – 50% do not get to Round 2. 90% are gone by Round 3. <\/p>\n\n\n\n

48% managed to raise 2nd round. 63% of these got to second follow on\/3rd round (Series B). 15% got to 4th round (Series C). Average time to raise is 20 months except in the 6th round which is taking 5 months due to investor eagerness. <\/p>\n\n\n\n

Median seed was $350K while average was $670K. The 6th follow on round mean was $40M while average was $120M. <\/p>\n\n\n\n

Odds of becoming a Unicorn is 1%. 12 companies reached that status in 2017-18 including over hyped companies like Uber, AirBnB, Slack, Stripe, and Docker. <\/p>\n\n\n\n

13 companies existed for over $500Mn including – Instagram, Zendesk and Twilio. <\/p>\n\n\n\n

\"Where<\/figure><\/div>\n\n\n\n

Silver lining?
30% seed funded companies exited through an IPO or M&A. <\/p>\n\n\n\n

Link to report : Venture Capital Funnel Shows Odds Of Becoming A Unicorn Are About 1%. It has the analysis of 2017 and 2015 as well. Marginal change YOY in % terms in each stage. Take a look. <\/p>\n\n\n\n

https:\/\/www.cbinsights.com\/research\/venture-capital-funnel-2\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In a report CBInsights analyzed 1100 startups (that raised seed rounds in 2008-2010) to answer exactly that question. Post seed funding 67% startups stall at some point, fail to raise or exit (unless they become self sustaining but unattractive for investors).<\/p>\n<\/p>

Continue Reading<\/span><\/i><\/a><\/div>","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"inline_featured_image":false,"ub_ctt_via":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[69,83],"tags":[70,81,110],"class_list":["post-2084","post","type-post","status-publish","format-standard","hentry","category-what-i-learnt-today","category-startup","tag-alwayslearning","tag-startups","tag-traction"],"aioseo_notices":[],"featured_image_src":null,"author_info":{"display_name":"Subhanjan Sarkar","author_link":"https:\/\/pitch.link\/blog\/author\/subhanjan\/"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paX7jg-xC","_links":{"self":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts\/2084"}],"collection":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/comments?post=2084"}],"version-history":[{"count":0,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts\/2084\/revisions"}],"wp:attachment":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/media?parent=2084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/categories?post=2084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/tags?post=2084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}