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Series A Investment Rounds Reach New Heights

A boom in giant late-stage funding rounds and a surge in angel investing may be the topics of the moment in startup finance circles, but a look at fresh data shows that another type of venture investment is also growing fast: the traditional Series A round.

Venture firms invested $2.5 billion in Series A deals in the second quarter of 2014, according to data from CrunchBase. That’s up more than 6% from the same quarter last year—and up 56% from just three years ago. The median size of Series A rounds hit $4.85 million.

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Joe Lonsdale
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Jeff Clavier, managing partner at the early-stage firm SoftTech VC, says that Series A competition is driving down the ownership stake that investors can command. While investors have often expected 25% to 30% stakes, competition among venture firms has pushed some investors to accept 20% or less, he says.