Early Stage Startups Report

Early stage financing trends, most active investors, well-funded companies and more.

Early Stage Funding Highlights

In 2016, early-stage US tech funding saw $6.9 billion invested across 2,488 deals. Despite a quarterly increase in Q3’16, deal activity is down 21% when compared the same quarter in 2015, which saw 1,028 deals. 

This shows that despite a contraction in activity, some of the deals happening are large by historical standards. Median sizes are within historical bands so a few large deals are pulling up average sizes. Indeed, we identify 5 $30M+ Series A rounds in Q3'16. 

Our analysis shows that it’s getting harder for seed and Series A-stage companies to obtain further financings, with the percentage of seed companies obtaining follow-on deals dropping from 57% of those that raised in 2010 to 49% for 2013 and 42% for 2014.

The firm beat out early-stage stalwarts 500 Startups and SVAngel for the top spot.

Early-stage average deal sizes down, but still high compared to 2015 and 2014 levels

The market for follow-on financing in US tech has become more difficult for startups

NEA was the most active early-stage VC in US tech in 2016 through Q3'16