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March 30, 2023 | Tom Ballard

Seed-funded start-ups having difficulty completing a Series A round

Crunchbase News reports that Series A funding has dropped for five consecutive quarters and is on target to do so when Q1 2023 results are reported.

Joanna Glasner writes in this recent article for Crunchbase News that, “the odds of graduating to a Series A round (for seed-funded start-ups” have never been particularly favorable. But as venture funding contracts, the chances have gotten even slimmer.”

According to an analysis of Crunchbase data,  Series A investment has fallen for five consecutive quarters, since peaking in late 2021, and it is on track to hit the lowest quarterly total in over two years.

“While biotech is alive and well at Series A, the same can’t be said for other sectors that were hot several quarters ago,” Glasner writes. “Fintech and Web3 have been particularly out of favor at Series A, which is a finding we also noted for Series B. It’s an especially striking shift for fintech, which was the leading sector for venture investment in 2022 across stages.”

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