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Data Point

How to Avoid the Series A Crunch

Source: Pitchbook
By
Peter Schulz
[email protected]Profile and archive
and
Reed Albergotti
[email protected]Profile and archive

It’s no secret everyone wants to build an app company and lots of investors want to fund one. But new data show the degree to which individual firms in the sector face taller odds of raising the next round of funding compared with startups other areas like financial software and network management.

The Information asked Pitchbook, which collects data on venture capital funding, to tell us if certain kinds of startups are more likely to make it over the “series A hump.” In other words, to go from their earlier seed round of funding to the next round or acquisition.

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