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!

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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.

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Founder Dilution