If you are building a startup today, it’s likely harder for you to raise money than it was a year ago. However, the new data makes it clear that not all starting stages are feeling the same headwinds.
The lack of uniformity in the startup fundraising climate is not new. We have seen, in various ways, a Series A crunch at one point and a Series B crunch at another. Today, however, we’re seeing something completely different: a C-Series crunch.
This does not mean that all early rounds are healthy or that later risk rounds are healthy. Almost everywhere you look, there are declines in venture activity that founders have to deal with. But the new data from Carta indicates that Series C is the current and real bottleneck in Venture Land, which means this is the new critical point for startups looking to raise their next tranche of cash.
The Exchange explores new companies, markets and money.
Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.
The data point is not that surprising. It’s some common wisdom that the later a startup is in its maturity cycle, the more scrutiny it will come under when looking for more money. With the IPO window closed, public market valuations in the proverbial latrine, and crossover capital suddenly running short, late-stage startups are being scrutinized more like public companies these days. And many of them are not ready.