If we do this, using the gap data from 2023-24 and an average of 60 Series A funded startups per annum (spread across the Tiers as shown below), this equates to an annual Series A gap of ~$181 M USD , as calculated below:
Series A Gap cf US per Tier 1 startup
Est. number of Tier 1 startups
Series A Gap cf US per Tier 2 startup
Est. number of Tier 2 startups
Total Series A gap
Category
Top 10%
$11,713,414
5
$11,713,414
1
$70,280,484
Next 15%
$3,203,980
8
$3,203,980
2
$28,835,820
Bottom 75%
$1,824,439
38
$1,824,439
8
$82,099,755
Total
---
50
---
10
$181,216,059
---
67
13
$241,518,723
Or if round count grew to:
---
83
17
$302,024,651
---
100
20
$362,432,118
Because US Series A sizes have grown at a long-term rate of ~9% per annum, this sum would need to increase over time at this rate, even if numbers of Series A rounds did not increase. While over the past 10 years the average annual Series A deal count has been higher, at around 86 deals per year, and this would equate to a gap of ~$260M, we are estimating the gap based on 50 Series A rounds per year. This number is well below historical average and is slightly above 2024 (a low year), though we expect the number of Series A rounds to increase from the 2024 level towards 100 per year within the next few years, i.e. through the period covered by VICCI 3. 4.3. Estimates of Seed-funding gap The Seed:SeriesA ratio for top North American ecosystems and for top Canadian ecosystems being 64%, the problem is not an imbalance of seed versus Series A.
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