Unicorns garner the headlines but 67% of investor-backed tech exit transactions last year came after the company raised just a seed or Series A round of financing.
According to CB Insights data, 2013 saw 67% of tech startups exit after either the seed or Series A stages. While a portion of those went to acqui-hires of startups hitting the Series A Crunch, the data is more likely a reflection of the venture capital power law in which the best investments returns more than the rest of the investments combined. The chart below highlights the last round of funding raised prior to M&A or IPO exit of venture-backed tech companies last year; Just 3% of VC-backed tech exits went to startups at the Series D+ stage.
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:
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