Series A to B taking longer than it has in a decade
Crunchbase data from 2012 to 2023 shows that the median time between a Series A and Series B is just under two years and just under 18 months for the speediest quartile of start-ups. Now it's noticeably longer.
The time between raising a Series A round and launching a Series B round is getting longer. In fact, according to an analysis published by Crunchbase News, it’s 31 months — the longest span in at least 12 years.
In this recent article, Joanna Glasner writes that an analysis of Crunchbase data from 2012 to 2023 shows that the median time between a Series A and Series B is just under two years and just under 18 months for the speediest quartile of start-ups. “But as venture funding contracts, the lag time between rounds is getting longer,” she writes. “Start-ups across sectors are taking steps to cut costs and extend runways. The steep rise in average round size in 2020 and 2021 also means many companies that raised then have plenty of cash to help push off the next fundraise.”
Glasner concludes with this sobering thought: “Sooner or later, however, Series A companies will have to do one of five things: Get acquired, go public, become self-sustaining, raise more financing or shutter. If enough years pass with none of the first four options happening, it becomes increasingly likely the startup will not make it.”