Founder Dilution, the AI Developer, Experts vs. Imitators, and Going from Series Seed to A to B
enough = rich
Good morning
I’m writing this from a plane over the ocean thinking how amazing it is to make that happen and what an opportunity it is to work, build and invest in people pushing the frontier of progress. As much as it’s difficult to build new stuff, I’m enjoying every moment and sharing stuff I learned along the way.
Thanks for being part of the journey.
In today's edition, among other things:
Time Between Incorporation and Funding Rounds
Founder Dilution
How to go from Seed to Series A to Series B
Experts vs. Imitators
Gaming Blueprint 2024
The Emergence of AI-Powered Services Firms
How to Actually Be Helpful
Onwards!
Time Between Incorporation and Funding Rounds
From Peter Walker (Carta):
Seed Stage (including priced seed rounds & SAFEs over $2M):
Median time from incorporation: 1.8 years
Trend: Up approximately 15% from 2019
This suggests that early-stage companies are taking slightly longer to secure their initial substantial funding compared to a few years ago.
Series A:
Median time from incorporation: 3.1 years
Trend: A modest increase of 10% from 2019
The journey to Series A appears to be extending gradually, indicating potentially higher bars for this crucial funding stage.
Series B
Median time from incorporation: 4.7 years
Trend: 16% higher than 2019
The gap between Series A and B seems to be widening, possibly reflecting increased expectations for traction and growth.
Series C
Median time from incorporation: 6 years
Trend: Slight decrease from 2023
Interestingly, the time to reach Series C has shortened slightly. This could indicate faster growth trajectories for successful companies or changing market dynamics.
Series D
Median time from incorporation: 8.1 years
The jump in time to Series D is significant, suggesting that companies reaching this stage are likely well-established with proven business models.
Velocity in building, patience in spending.
Founder Dilution
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