Startup Funding Benchmarks
The requirements for startups to raise funding are constantly in flux. Leveraging our observations on dozens of term sheets and deals per month spanning many industries and geographies, the below metrics can provide a solid baseline for entrepreneurs planning out their fundraising and growth strategy.
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 | Product-Market Fit | Expansion |
Pre-Seed
Customer Validation
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 | $0 - $75k | $75k - $200k | $200k+ |
Pre-Seed
$0 - $75k
Seed
$75k - $200k
Series A
$200k+
|
| Team Size | 2+ | 10+ | 20+ |
Pre-Seed
2+
Seed
10+
Series A
20+
|
| Product | MVP | Robust | Commercial |
Pre-Seed
MVP
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 - $750k | $750k - $4m | $4m+ |
Pre-Seed
$25k - $750k
Seed
$750k - $4m
Series A
$4m+
|
| Company Valuation | $1m - $5m | $5m - $12m | $30m - $60m |
Pre-Seed
$1m - $5m
Seed
$5m - $12m
Series A
$30m - $60m
|
| Investment Vehicle | SAFE/ Convertible Note | Priced Round | Priced Round |
Pre-Seed
SAFE/ Convertible Note
Seed
Priced Round
Series A
Priced Round
|
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 - $2m Revenue Run Rate | $5m - $20m Revenue Run Rate |
Pre-Seed Traction
$5k - $500k Transaction Revenue
Seed Traction
$250k - $2m Revenue Run Rate
Series A Traction
$5m - $20m Revenue Run Rate
|
| Consumer Audience | Demonstrable Customer Demand, 5k+ DAUs, Great Retention | 25k - 100k DAUs, Network Effects | 500k+ DAUs |
Pre-Seed Traction
Demonstrable Customer Demand, 5k+ DAUs, Great Retention
Seed Traction
25k - 100k DAUs, Network Effects
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
|
Methodology
The Founder Institute is the world's largest pre-seed startup accelerator, with over 6,500 portfolio companies spanning 95 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
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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 6,500 entrepreneurs raise over $1.75BN in funding. Based in Silicon Valley and with chapters across 95 countries, our mission is to empower communities of talented and motivated people to build impactful technology companies worldwide.
