Startup Funding Benchmarks
Deal terms, and the requirements to raise startup funding, are constantly in flux. The below metrics reflect what we are seeing across dozens of deals per month, and across most major geographic markets and industries.
Startup Funding Requirements & Milestones
The below are the average milestones and deal metrics we are observing across the globe on the date displayed.
Please note these figures are an approximate average, since deals vary widely across geographic markets, industries, and companies. In the end, a company is worth what an investor/ acquirer is willing to agree it is worth and the below should only be used as a baseline guide.
| Stage | Pre-Seed | Seed | Series A | |
|---|---|---|---|---|
| Traction | Customer Validation + Early Users | Product-Market Fit | Expansion |
Pre-Seed
Customer Validation + Early Users
Seed
Product-Market Fit
Series A
Expansion
|
| Growth Rate | 0 - 20% MoM | 15% - 30% MoM | 25%+ MoM |
Pre-Seed
0 - 20% MoM
Seed
15% - 30% MoM
Series A
25%+ MoM
|
| Monthly Revenue | $1 - $50K | $50K - $200K | $200K+ |
Pre-Seed
$1 - $50K
Seed
$50K - $200K
Series A
$200K+
|
| Team Size | 2+ | 5+ | 10+ |
Pre-Seed
2+
Seed
5+
Series A
10+
|
| Product | MVP (with users) | Robust | Commercial |
Pre-Seed
MVP (with users)
Seed
Robust
Series A
Commercial
|
| Investors | F&F, Seed Accelerators, Angels, Pre-Seed/ Micro VC Funds | Seed Accelerators, Angels, Seed VC Funds | Series A/ Growth VC Funds, Existing Investors |
Pre-Seed
F&F, Seed Accelerators, Angels, Pre-Seed/ Micro VC Funds
Seed
Seed Accelerators, Angels, Seed VC Funds
Series A
Series A/ Growth VC Funds, Existing Investors
|
| Round Size | $25K - $2MM | $2MM - $5MM | $6MM - $30MM |
Pre-Seed
$25K - $2MM
Seed
$2MM - $5MM
Series A
$6MM - $30MM
|
| Company Valuation (Post-Money) | $1MM - $8MM | $8MM - $32MM | $20MM - $50MM |
Pre-Seed
$1MM - $8MM
Seed
$8MM - $32MM
Series A
$20MM - $50MM
|
| Investment Vehicle | SAFE/ Convertible Note | Priced Round | Priced Round |
Pre-Seed
SAFE/ Convertible Note
Seed
Priced Round
Series A
Priced Round
|
| Equity Sold | N/A (convertible) | 15-25% | 15-25% |
Pre-Seed
N/A (convertible)
Seed
15-25%
Series A
15-25%
|
Startup "Traction" Metrics
In general, investors invest in "traction" over ideas. But the definition of "traction" changes across industries, and over time. The below are the average traction metrics/ milestones we are observing across the globe on the date displayed.
| Industry | Pre-Seed Traction | Seed Traction | Series A Traction | |
|---|---|---|---|---|
| Marketplaces/ eCommerce | $5K - $500K Transaction Revenue | $250K - $2MM Revenue Run Rate | $5M - $20MM Revenue Run Rate |
Pre-Seed Traction
$5K - $500K Transaction Revenue
Seed Traction
$250K - $2MM Revenue Run Rate
Series A Traction
$5M - $20MM Revenue Run Rate
|
| Consumer Audience | Demonstrable Customer Demand, 5K+ DAUs, Great Retention | 25K - 100K DAUs, Network Effects, Retention | 500K+ DAUs |
Pre-Seed Traction
Demonstrable Customer Demand, 5K+ DAUs, Great Retention
Seed Traction
25K - 100K DAUs, Network Effects, Retention
Series A Traction
500K+ DAUs
|
| Saas | Paid Pilots | $20K - $100K MRR | $200K MRR, 12 months of Cohort Data |
Pre-Seed Traction
Paid Pilots
Seed Traction
$20K - $100K MRR
Series A Traction
$200K MRR, 12 months of Cohort Data
|
| Deep Tech | Strong Leadership, PoC, GitHub Stars | Strong Leadership, PoC, IP, GitHub Stars | Commercial Validation |
Pre-Seed Traction
Strong Leadership, PoC, GitHub Stars
Seed Traction
Strong Leadership, PoC, IP, GitHub Stars
Series A Traction
Commercial Validation
|
Current State of Funding
In 2025, we expect the startup fundraising landscape to improve on the "stabilization and slow growth" trend that it displayed in 2024. As the market for later stage rounds continues to improve, more money should begin flowing into the early stages - which have been resilient to date.
However, we believe the amount of growth we see in 2025 will be largely dependent on the outcome of the many tech IPOs on the horizon. Strong IPO debuts will catalyze larger growth across the entire funding stack, while weak or middling debuts will lead to a slower growth trend akin to 2024.
To successfully fundraise in 2025, entrepreneurs must showcase traction (even pre-revenue startups) AND capital efficiency. With AI tools there is no excuse for not 'creating a lot with a little.' Be prepared to pitch to a large number of investors (100-200), using the process as a way to both find investment and improve your pitch.
Methodology
The Founder Institute is the world's largest pre-seed startup accelerator, with over 7,500 portfolio companies spanning 100 countries. Our data is derived from working closely with FI Alumni on their financing efforts on a daily basis, and observing dozens of term sheets and deals per month. In addition, this data leverages feedback from the FI Venture Network (a network of investors that participate in the earliest startup funding rounds) and our sister company, VC Lab (the leading accelerator to launch new venture funds).
Frequently Asked Questions
Join the Founder Institute Global Network
Since 2009, the Founder Institute has been on a mission to empower talented people to build businesses that matter across the globe.
For Curious
Startuppers
We host thousands of free startup events per year with top entrepreneur and investor speakers.
For Aspiring
Entrepreneurs
Now is the time to build a company that matters. Apply to our pre-seed accelerator program.
For Aspiring
Ecosystem Leaders
Rally your community to launch startups that will have a positive impact on the world. Apply to lead an accelerator.
For Aspiring
Fund Managers
Launch a VC firm and fund businesses that will build a bright future. Apply to join our VC builder program.
The Founder Institute is the world’s most proven network to turn ideas into fundable startups, and startups into global businesses. Since 2009, our structured accelerator programs have helped over 7,500 entrepreneurs raise over $1.85BN in funding. Based in Silicon Valley and with chapters across 100 countries, our mission is to empower communities of talented and motivated people to build impactful technology companies worldwide.
