“Founders, heads up – if you’re planning to raise a VC round every 18 months, you’re planning to fail these days.”
Peter Walker, Head of Insights at Carta
The venture capital landscape has shifted. The rapid-fire funding rounds of the recent past are giving way to a new reality: longer timelines between raises and a significantly higher bar to clear for securing your next round of capital. Founders need to understand these changes and adapt their strategies to thrive in this evolving environment.
Recent data paints a clear picture. If you’re still planning to raise a new round every 18 months, it’s time for a reality check. According to Carta data from 14,454 US startup rounds between 2019–2024, the median time between funding rounds has increased significantly as of the end of 2024:
- 2.2 years from Seed to Series A
- 2.5 years from Series A to Series B
- 2.4 years from Series B to Series C
This lengthening of cycles is corroborated by a Crunchbase survey of U.S. companies, which found the median time lapse between Series A and B rounds in 2024 reached 28 months, the longest span in over a decade.
This is a significant stretch compared to the traditional 12–18 month fundraising cycle. And it’s not only the time period that has been elongated. It’s also that the bar is higher. If in the past the bar for startups raising a series A was $1M in ARR, it’s not so simple any more. Only 17% of startups that raised seed rounds in 2022 have made it to a Series A after two years, marking one of the lowest progression rates in recent memory.
Why the slowdown?
- Investors are being far more selective, prioritizing strong fundamentals.
- Startups are focusing on profitability and extending runway, rather than chasing growth.
- Rising capital costs and cautious market conditions are reshaping how startups grow.
For founders, getting from seed to Series A now demands more than just vision — it requires capital efficiency, solid metrics, and clear product-market fit.
How should founders prepare to adapt to this new funding reality
While the availability of capital may be more constrained for many, founders with truly differentiated technology and clear paths to profitability can still raise money. But it’s important to plan according to the reality in the field, and not based on past anecdotes. Here’s what founders can do to navigate the current period:
- Raise Enough: Don’t undercapitalize. Budget for at least 24 months of runway, with clear growth milestones.
- Focus on Proof Points: Show clear product-market fit, strong retention, and efficient scaling before you even think about raising your next round.
- Own Your Journey: Control your burn. Prioritize a path to profitability (or at least breakeven optionality).
- Play the Long Game: The “fast lane” is slower now. Success will favor patient, disciplined builders.
The days of easy money are over. In 2025, founders must adapt to a tougher, more disciplined fundraising environment.
I'm a former general partner at google ventures, head of Google for Entrepreneurs in Europe and founding head of Campus London, Google's first physical hub for startups.
I'm also the founder of Techbikers, a non-profit bringing together the startup ecosystem on cycling challenges in support of Room to Read. Since inception in 2012 we've built 11 schools and 50 libraries in the developing world.
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