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.
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+ | 4+ | 8+ |
Pre-Seed
2+
Seed
4+
Series A
8+
|
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, Corporate VCs, 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, Corporate VCs, 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%
|
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 | $10K - $500K Transaction Revenue | $250K - $3MM Revenue Run Rate | $7M - $20MM Revenue Run Rate |
Pre-Seed Traction
$10K - $500K Transaction Revenue
Seed Traction
$250K - $3MM Revenue Run Rate
Series A Traction
$7M - $20MM Revenue Run Rate
|
Consumer Audience | Demonstrable Customer Demand, 5K+ DAUs, Great Engagement | 25K - 100K DAUs, Network Effects, Great Engagement/ Retention | 600K+ DAUs |
Pre-Seed Traction
Demonstrable Customer Demand, 5K+ DAUs, Great Engagement
Seed Traction
25K - 100K DAUs, Network Effects, Great Engagement/ Retention
Series A Traction
600K+ DAUs
|
Saas | Paid Pilots | $30K - $150K MRR | $250K MRR, 12 months of Cohort Data |
Pre-Seed Traction
Paid Pilots
Seed Traction
$30K - $150K MRR
Series A Traction
$250K MRR, 12 months of Cohort Data
|
Deep Tech | Strong Leadership, LOIs, PoCs | Strong Leadership, POCs, Strong IP | Commercial Validation |
Pre-Seed Traction
Strong Leadership, LOIs, PoCs
Seed Traction
Strong Leadership, POCs, Strong IP
Series A Traction
Commercial Validation
|
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Coming into 2025, we projected that strong IPO debuts would catalyze larger growth across the entire funding stack, while weak or middling debuts would lead to a "stabilization and slow growth" trend akin to 2024.
Thus far the IPO and M&A market has underperformed and a large amount of economic uncertainty was spurred by the U.S. tariffs, though there are signs of recent improvement.
In this latest update, we have seen small increases across all traction benchmarks, likely due to the increasing demand for founder efficiency and growth from AI. We have also seen a leveling out of team sizes, once again likely due to this increased focus on efficiency.
The "Series A Crunch" that started in 2023 has only grown wider as the supply of seed-stage companies trying to raise A rounds has increased, enabling investors to be picky and operate from a position of great strength. For many seed-stage companies metrics are no longer enough to raise the A - a strong vision and narrative for the future exponential growth of your company is required.
While most cumulative fundraising metrics are flat or dropping across the board, we still see the biggest gap to be the Series A round and not the earlier rounds. We are also seeing a large number of new small/ micro-VC funds ($<20MM fund size) picking up the slack in the pre-seed and seed space that was created when many later stage funds retreated from the early stages.
To successfully fundraise in 2025, entrepreneurs must showcase traction (even pre-revenue startups), capital efficiency, and a strong vision/ narrative for their future growth. 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.
The Founder Institute is the world's largest pre-seed startup accelerator, with over 7,800 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).
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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 7,800 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.