INSUBCONTINENT EXCLUSIVE:
A little-noticed startup financing trend has big implications for how VC firms evaluate companies raising Series A and B roundsMore posts by
this contributorRound sizes are up
There are more investors than ever hunting unicorns around the globe
But for all the talk about the abundance of venture funding, there is a lot less being said about what it all means for entrepreneurs
raising their early funding rounds.Take for instance Seed-stage dilution
Since 2014, enterprise-focused tech companies have given up significantly more ownership during Seed rounds
What gives?Scale is an investor in early-in-revenue enterprise technology companies, so we wanted to better understand how this trend in
Seed-stage dilution impacts companies raising Series A and Series B rounds.Using our Scale Studio dataset of performance metrics on nearly
800 cloud and SaaS companies as well as Pitchbook fundraising records covering B2B software startups, we started connecting the dots between
rounds.These days, successful startups are growing up faster than ever.Founders face an important trade-off decision
