Most VC-backed tech companies are exiting before reaching the Series C stage of their lifecycle. And, as illustrated in our 2015 Global Tech Exits Report, nearly half or 48% of VC-backed tech companies exit at the seed or Series A stage
We used CB Insights data and analytics to dig into this data further.
Last round raised before exit
Almost half or 48% of exits in VC-backed tech companies globally occurred after the companies raise seed or Series A (early-stage) financing. Meanwhile, 27% of tech exits happened after the companies raised Series B or C rounds (mid-stage). Only 13% of tech exits occurred after the companies raised Series D or Series E+ (late-stage) financings as their last round.
Interestingly, not all early-stage startups need to raise multiple rounds of funding to exit for a hefty valuation. For example, UK-based real estate tech company Purplebricks last raised a $11.7M Series A before going public at a $360M+ valuation, and cybersecurity startup Caspida raised $9.7M in Series A funding before being acquired for $190M.
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This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
- Earnings Transcripts Search Engine & Analytics to get an information edge on competitors’ and incumbents’ strategies
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