Private Company Fundraising in 2018
Carta’s posted an article (including several graphs) about the state of private company fundraising in 2018. Here are the top takeaways:
- Higher valuations and more cash
- Median post-money valuations have increased for all stages of venture-backed companies over 2017. Increase is around 15% for Seed to Series C, and 128% for Series D.
- Median cash raised has increased for all stages. Seed to Series B increase is around 7%. Series C to Series D is around 21%.
- Amount of ownership sold
- Seed companies have been selling around 25% ownership for the last 5 years.
- Series A ownership sold has decreased from 30% in 2015 to 27% in 2018.
- Fundraising and company age
- Companies raising Seed rounds earlier and raising Series A rounds later (i.e., more time between Seed round and Series A round).
- Median Seed cash increased from $1.5 million in 2014 to $2.1 million in 2018.
- More Seed cash provides longer runway before Series A.
- Seasonality in fundraising
- Number of rounds closed is highest in December.
- Lowest in January and February.