At a glance
- Seed rounds held up better: 984 in the third quarter, down from 1,059 a year earlier.
- For allocators underwriting seed managers, the diligence question is how many portfolio companies clear a Series A, not the entry price.
- The median US seed round was about $3 million last year, three times its 2018 level, according to Crunchbase.
US startups closed 272 Series A rounds in the third quarter, about 28% fewer than the 377 recorded a year earlier, according to Crunchbase data reported by Crunchbase News.
Seed rounds held up better: 984 in the third quarter, down from 1,059 a year earlier. Graduation has not kept pace. Only 24% of companies that raised a $1 million-plus seed in 2023 have moved past seed, according to Crunchbase. Just 16% of the 2024 cohort has, down from 55% or higher for cohorts through 2020.
For allocators underwriting seed managers, the diligence question is how many portfolio companies clear a Series A, not the entry price. A seed fund's reserve budget and follow-on plan rest on that count, which turns on go-to-market hiring as much as on product.
The median US seed round was about $3 million last year, three times its 2018 level, according to Crunchbase. Larger checks have not produced faster graduation.
Share of seed companies reaching Series A, by seed year
Companies that raised a $1M+ seed and have since moved past seed
Show as table
| Label | Value (%) |
|---|---|
| Through 2020 | 55% |
| 2023 | 24% |
| 2024 | 16% |
Most of this year's $100 million A rounds went to AI
Globally, startups have closed at least 114 Series A rounds of $100 million or more this year, and more than 70% of them went to AI companies, Crunchbase reported in late September. Those megarounds sit above a thinner base of ordinary A rounds.
Uncork Capital's Andy McLoughlin told Crunchbase News that Series A investors now expect $2 million to $3 million in ARR, sometimes $4 million, and that the stretch from seed to A now runs past two years. If a seed round won't carry a company to that bar with six months to spare, a smaller round is the better deal, the Crunchbase News article says.
Crunchbase News cites Atomic, a New York supply chain planning software company founded in 2023, which raised a $3 million seed in April 2025 led by Madrona and DVx Ventures and closed a $12.5 million Series A led by Madrona and Klass Capital about 17 months later.
An MGV column published with the data argues that 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. Funds of $100 million to $500 million typically lead Series A rounds, the column adds, and founders should learn which ones lead at their stage and when their current fund closes. An allocator can run that list against the A rounds already logged by a seed manager's portfolio.
Reported by the Venture Capital desk from Crunchbase News. Published . Corrections