In 2025, startup founders encounter a challenging capital market where access is harder despite capital availability. Only one in five startups proceeding from Series A to Series C succeeds. Investors now prioritize certainty over momentum, asking if companies are genuine market winners. Companies aiming for Series C must be category leaders with clear go-to-market strategies and must demonstrate undeniable traction. Metrics are crucial, but if investors don’t believe in the potential for market leadership, they will look elsewhere. Companies can raise Series C without stellar metrics if the vision for future success is convincing.
"Only one in five startups that raise a Series A ever make it to raise a Series C. The bar for raising late-stage capital has only risen."
"Investors are now asking: 'Is this company truly a winner in whatever market that they're serving?' The question has shifted to, 'is this company on a trajectory where the upside is really undeniable?'"
"Companies raising Series C rounds should be category leaders, defining their categories with clear go-to-market and undeniable pull."
"Metrics are important, but if investors are not sold on the idea that a company can truly become a leader in their respective space, they are going to move on."
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