Global startups closed at least 114 Series A rounds of $100 million or more so far this year, with more than 70% going to AI companies, according to Crunchbase data from late September. Meanwhile, U.S. startups closed 272 Series A rounds in the third quarter, about 28% fewer than the 377 in the year prior.
The median U.S. seed round reached about $3 million last year, 3x its 2018 level. Yet only 24% of companies that raised a $1 million-plus seed in 2023 have moved past seed, and just 16% of the 2024 cohort, down from 55% or higher through 2020.
Series A investors now expect $2 million to $3 million in ARR, sometimes $4 million, according to Andy McLoughlin of Uncork Capital. The time from seed to Series A has stretched past two years. Atomic, a New York-based supply chain planning software company founded in 2023, raised a $3 million seed in April 2025 led by Madrona and DVx Ventures, then closed a $12.5 million Series A led by Madrona and Klass Capital about 17 months later.
McLoughlin said that if a seed won't carry a company to the Series A bar with six months to spare, a smaller round is the better deal. Funds of $100 million to $500 million typically lead Series A rounds, and founders should map which ones lead at their stage and when their current fund closes before seeking introductions.
The Series A bar is now a revenue bar, making it a go-to-market problem first. A company at $2 million in ARR with a sales process a new hire can run is a better Series A candidate than one at $3 million built on founder-led deals nobody else can repeat.