guess it's not because of a lot of nice exits after a seed round but before series A
This data from Mattermark shows something I constantly warn about. The initial drop shocks complacent founders.pic.twitter.com/W38rGPRdS5
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Such exits as there are are rarely nice.
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Is it really shocking though considering we're essentially talking about investors hedging more risk in exchange for less equity?
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is this % of companies that raised (which it seems) or success rate of companies that tried to raise series X (equally interesting)?
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The former, but in the beginning that is close to the latter.
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but the numbers don't support the idea of an initial drop. The log-scale curve suggests a steady rate https://mattermark.com/startup-graduation-rate-surprisingly-low/ …
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Hey, author of the post here. The straight-ish lines on the log chart indicate exponential decay in survival rate, not linear
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if you do them round for round you get the idea survival approx 40% per roundpic.twitter.com/QQ4gDUoV7U
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at the same time, if you are profitable, why always raise more? Could be that founders don't want to use the raise-money road no?
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