Even top companies are taking longer to raise

May 9

Data Insights

Aumni

We previously pointed out that the mean and median time between financing rounds increased in 2023 for all rounds, from Seed through Series D+, reaching a five-year high of an average of approximately 23 months in the later part of the year.

Historically, across stages, companies that achieved valuations above the 75th percentile usually closed subsequent financing rounds much faster than those at lower valuations. For example, in 2021, a company that obtained a post-money valuation above the 75th percentile was able to close the subsequent financing round in approximately 10 months, whereas it took over 20 months for companies below the 25th percentile in valuation, according to Aumni-tracked venture deals.

In 2023, however, even top-quartile companies saw a sharp increase in the number of months it took to raise the subsequent round of capital. Executive teams may simply be waiting for more favorable conditions to raise capital, or it really is much more difficult for even the top-performing companies to obtain financing.

See more in the Aumni Venture Beacon Year End 2023 Report.

Want to be the first to get these insights? Scroll down to sign up for our Venture Insights newsletter.

Photo from Getty Images at Unsplash

See disclaimers