Seed funding in the U.S. has grown but shifted dramatically toward larger investments, with over half of 2025 deals exceeding $10 million. Crunchbase data reveals seed-stage startups now average $12.5 million per round, up from $7 million in 2021, as smaller rounds below $10 million shrink. This trend mirrors how Series A funding operated seven years ago, according to Mercedes Bent, co-founder of a new stealth fund and former Lightspeed partner.

The Bay Area dominates this shift, capturing a third of all seed deals in 2025. Its AI ecosystem, anchored by San Francisco’s tech giants, attracts outsized investments. Third of seed funding deals flow there, where pre-seed rounds (under $3 million) are rare, and seed rounds typically range from $3 million to $10 million. Post-money valuations now span $20 million to $50 million, Bent noted.

Larger seed rounds — 350 deals between $10 million and $50 million — now outnumber smaller deals, with 20+ startups securing $50 million or more. This consolidation reflects investor preference for proven teams and scalable AI ventures. Startups with elite pedigrees or Silicon Valley connections gain disproportionate access to capital, Bent explained.

The data underscores a widening gap: while total seed funding grows, typical startups face steeper hurdles. Only 10% of companies raise tens of millions within two years of founding, highlighting the exclusivity of today’s funding landscape. Investors prioritize bets on high-return outcomes, bending toward established hubs and mega-deal thresholds.