Global startups have closed at least 114 Series A rounds of $100 million or more so far this year, with over 70% going to AI companies. This surge in mega-rounds masks a shrinking Series A market, leaving seed founders facing higher revenue expectations and longer timelines. U.S. startups closed 272 Series A rounds in Q3, a 28% decrease from the previous year, while seed rounds held up better at 984 compared to 1,059. The median U.S. seed round reached about $3 million last year, triple its 2018 level. Yet only 24% of companies that raised a $1 million-plus seed in 2023 have moved past seed, and just 16% of the 2024 cohort, down from 55% or higher through 2020.
Series A investors now expect $2 million to $3 million in ARR, sometimes $4 million, and the time from seed to A has stretched past two years. If a seed won’t carry you to that bar with six months to spare, a smaller round is the better deal. A bigger seed isn’t required. Take Atomic, a New York-based supply chain planning software company founded in 2023. It raised a $3 million seed, right at the median, in April 2025, led by Madrona and DVx Ventures, then closed a $12.5 million Series A led by Madrona and Klass Capital about 17 months later.
Funds of $100 million to $500 million typically lead the Series A. Figure out which ones lead at your stage and when their current fund closes, then send the right partners updates for a year before you ask for anything. The Series A bar is now a revenue bar, which makes it a go-to-market problem first. Most seed companies have a stronger product than sales motion. At MGV, our work starts with a first session we call Sales Jumpstart: we interview the founders and their team. We then score the company on our proprietary matrix: where it is today, where it should be, and what it needs to become a scalable go-to-market machine. From there, founders work through workshops on outbound reach, qualification, profiling, the funnel, objection handling, hiring assessment, compensation plans, fundraising, deck building, storytelling and investor intros, with mentoring alongside. A company at $2 million in ARR with a sales process a new hire can run is a better Series A candidate than one at $3 million built on founder-led deals nobody else can repeat. The founders who make it are already planning for the round after this one.
Source: Crunchbase News · Summarized by HeadlinesBriefing