Embroker, the leading provider of insurance to venture backed startups, has published “A Look Into VC Funding in 2019,” a report that analyzes the venture capital (VC) middle market and successful startups under $1 billion.
Large-scale fundraising has, without a doubt, produced a frenzy in the startup world, and the majority of data and VC industry reports focus on the high end of the market, failing to paint a comprehensive picture of VC medians and the state of successful startups in the lower and middle markets. In order to shed light on the state of average startup funding, Embroker published a report on the relationship between VC funding and startup revenue.
Highlights from the report include:
- 28% of U.S. based startups started acquiring capital in the pre-revenue stage
- 40% of seed startups needed to raise $5–10 million to move onto Series A rounds
- 42% of startups that moved onto Series B raised funds of $20 million or more
- Media startups have the greatest funding success averaging over $81.9 million raised in Series B alone
- The real estate sector dominated seed funding raising $8.9 million on average
This inaugural report analyzed a sample of the thousands of startups that Embroker works with and their funding data such as geographical differences in venture capital, the relationship between funding and revenue averages, discrepancies in funding brackets by round, and the correlation between the size of startups and funding success.
“Our data sheds light on the funding of companies that is not typically represented in the VC industry reports published today,” said Embroker CEO Matt Miller. “Our report shows that, without a doubt, U.S. venture capital activity outside of large-scale funding is not only fueling the ideas and innovations of tomorrow but is a driving force in helping to build a solid foundation for today’s U.S. economy.”