Tag Archives: Series A

Crowdfunding For Equity: Title III and Equity Crowd Funding 101

Business Plans and Crowdfunding

Crowdfunding For Equity: Title III and Equity Crowd Funding 101

What is Equity Crowdfunding?

Equity crowdfunding is on the rise after the signing of the Jumpstart Our Business Startups (JOBS) Act was signed by President Obama in April 2012.

Simply put, it is a type of crowdfunding that enables broad groups of investors to fund startup companies and small businesses in return for equity.

Three years after the JOBS Act was initially passed, Title IV (Regulation A+) went into effect, allowing larger companies to accept capital from both accredited investors (the wealthiest 2% of Americans) and non-accredited investors (the other 98% of Americans). This expanded when Title III (Regulation CF) was enacted in October 2015, which also allowed early stage companies to accept capital from both accredited and non-accredited investors.

More About Title III (Reg CF)

Title III allows startups and small businesses to raise up to $1M from the general public – an unprecedented way to raise capital. More specifically, investors who have less than $100,000 in both income and net worth may invest at least $2,000 per year, and as much as 5 percent of their income or net worth (whichever is less) per year.

Investors whose income or net worth is greater than $100,000 may invest up to 10 percent of their income or net worth (whichever is less) per year.

Thus, Title III gives companies that are historically underserved by the current capital markets an equal opportunity to equity financing.

On May 16th, Title III will officially go into effect.

Process

Choosing a Funding Portal

Under Title III, companies must use an online intermediary (either a broker-
dealer or crowdfunding portal registered with the SEC and FINRA), to facilitate a
fundraise. Experienced portals with a deep understanding of the regulations
surrounding Reg CF can help ensure that their campaigns are compliant with SEC rules.

Filing a Form C

Companies raising under Title III do not need to get SEC approval to initiate their
raise. They must, however, prepare a Form C and file it with the SEC 21 days prior to launching an offering. This form includes basic information about the company, its employees and the terms of the raise.

Disclosure Requirements – Financial Information

In addition to Form C, necessary financial information will depend on the size of
the intended investment needs:

 Under $100k – Internal financial statement review

 $100k-500k – CPA reviewed financial statements

 500k-1M – 3rd Party audited financial statements

 1st time crowdfunding issuers offering more than $500,000 would be permitted to provide reviewed, rather than audited, financial statements.

 Disclosure Requirements – Ongoing Reporting

Providing progress reports not only build trust with investors and keep them informed, but they’re also a very much required part of the disclosure requirements. Upon the successful closure of your campaign, you will be required to provide ongoing updates to your investors in the form of an annual report, which will include similar information that was included on the Form C.

In summary, what are the benefits and pitfalls of Title III?

Benefits:

 Title III can be an efficient way to quickly startups raise capital from the crowd

 More investors equate to more supporters in your startup

 Reporting requirements give founders and investors an opportunity to

Pitfalls:

 Current statutory disclosure obligations and costs are overly burdensome

 Legal and accounting fees may be higher than traditional capital-raising

 Title III does not include a “testing the waters” provision (like Reg A+ maintain a more open and transparent dialogue methods does) so that issuers can gauge interest before incurring burdensome filing and preparation costs

Remember, Regulation CF will become effective 180 days after the final rules are published in
the Federal Register on May 16, 2016.

If you have a question about your equity crowdfunding for your Startup or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Furry Innovation: Pets Are Startup Businesses New Best Friends

Furry Innovation: Pets Are Startup Businesses New Best Friends

It’s no denying it, we love our pets and we’re willing to spend countless amounts of money in order to enhance their health, happiness, and even appearance.

According to the American Pet Products Association an estimated $58.5 billion was spent on pets in 2014. With nearly $330 million on pet costumes for Halloween alone.

From OnDemand Pet Adoptions to “Furspray” the newest way to decorate your pet for special occasions, Pet Startups combine the love of animals with a high-growth business opportunity. However, along with business opportunities comes fierce competition.

Currently listed on Angel List, there are 490 Pet Startups with an average valuation of $3.7 million across a pool 1,012 Investors. Leading the pack and setting the investment stage are DogVacay and Bark&Co.

DogVacay offers an on demand approach to petsitting near home, having securing 4 healthy funding infusions since 2012. Including: $1 million dollar seed round in May 2012, $6 million Series A round in Nov. 2012, $15 million dollar Series B round in Oct. 2013, and $25 million in Oct 2014.

Bark & Co. leveraged an untapped business model of a monthly subscription box of dog goodies with BarkBox and continued to expand across several other major properties:

BarkPost: Your daily dose of doggy news
BarkShop: Spoil your pup with the very best
BarkBuddy: Find fluffy adoptable singles in your area
BarkLive: Amazing experiences for you and your dog

Also securing a steady funding infusion including: $25,000 in Jan 2012, $1.7million in July 2012, $5million Series A round in April 2013, and $15million Series B Round in July 2014.

Funding is so red hot for Pets Startups, if the U.S. pet products industry collectively was a Fortune 500 company, it would be bigger than Google, Dell, UPS, or Coca-Cola.

Meanwhile, like any high-growth industry, it’s attracting a new breed of startup entrepreneurs with furry ambitions.

Here are a few “underdogs” that captured our attention here at The Startup Up Garage.

XcDogs: Based out of Jackson Hole, Wyoming, and it connects people who travel with their pets to locals willing to pet-sit short-term who is actively seeking funding at this time.

CleverPet: a local San Diego Startup which with a “Smart” pet gadget that educates and interacts with your animal companion in your absence. CleverPet had a successfully funded Kickstarter campaign of $180,623 and appears to have a variety of undisclosed funding in Sept 2015.

Urban Leash: offers on demand dog walking and cat-sitting services from anywhere at anytime, who a secured a $99,500 seed round in Nov 2014.

AllPaws is OkCupid for Finding Pets to Adopt, Swiping left and right and sifting through profiles is a regular practice for people looking for love nowadays.

Through the website and app AllPaws, the same approach is being used for those looking for a four-legged soulmate. AllPaws raised $1 million in capital in April 2013.

Will the Pet Startups above disrupt the pet industry as we know it?
Only time will tell, if they’re barking up the right tree.

If you have a question about your Startup business idea or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

The Correlation between A Startups Seed Round and Series A Round

The Correlation between Your Seed Round and Your Series A Round from The Startup Garage

The Correlation between A Startups Seed Round and Series A Round

Here at The Startup Garage we are often asked, “Has it become harder to raise capital for Startups nowadays?”

 

The answer is, yes and no.

On the one hand, the total dollars invested in U.S. startups in 2014 reached its highest point since the dot-com boom in 2000, according to Bloomberg. On the other hand, there are more startups competing for these dollars than ever before.

One of the hardest rounds to raise, and subsequently one of the biggest hurdles to startup success, is the Seed round. This round is potentially the riskiest round for an investor as most startups raising Seed capital have yet to accomplish any significant milestones that prove the concept.

The technology or product development is usually in its infancy,
The team is lacking,Traction is nominal if present at all, and The key benchmarks for success have yet to be proven. As a result, many good ideas never make it out of the gate.

Those that successfully navigate the Seed round significantly increase their chance at entrepreneurial success and at raising their next round of capital, the Series A round.

When raising a Seed round the question becomes, “How large of a seed round should I raise to maximize my chances of raising a Series A round?”

Smaller Seed rounds seem like a quick fix because they are simpler and faster to raise as they typically require less investors.

However, in order to raise a significant Series A round, the startup needs sufficient capital to accomplish enough milestones that will attract Series A investors. As a result, we see a direct correlation between the amount of capital raised in the Seed round and the amount of capital raised in the subsequent Series A round.

According to data from CB Insights, companies that raised both a Seed round and a Series A round can be categorized as follows:

  • Small – Below the 25th percentile (<$360K for Seed, <$2M for Series A)
  • Average – Between 25th and 75th percentile (between $260K and $1.5M for Seed, between $2M and $7M for Series A)
  • Large – Above 75th percentile (>$1,5M for Seed, >$7M for Series A)As depicted in the chart below, nearly half of all large Seed deals became large Series A deals. Most of the other large Seed deals went on to raise average Series A rounds with a small number raising a small Series A round.

For companies that raised small Seed rounds, 57% went on to raise an average Series A round, and only 13% raised Series A rounds of $7M+. Lastly, 63.8% of companies that raised an average Seed round went on to raise an average Series A round.

Moral of the story: if you plan on raising a Series A round, don’t cut yourself short during your Seed round.

Seed Funding From the Startup Garage

If you have a question about your Startup business idea or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

How To Determine Market Traction For Your Startup

How To Determine Market Traction From The Startup Garage

How To Determine Market Traction For Your Startup

The major thing to know about the first few years of funding a startup business is that in order to attract investor capital you must accomplish certain milestones.

Accomplishing milestones helps to reduce the risk associated with the startup venture.

Investors are constantly assessing risk when evaluating a startup and obviously prefer those that assume less risk. Additionally, accomplishing milestones allows you to raise capital at a much higher valuation because you’ve thereby improved the risk-to-return ration (i.e. the riskier the business the more equity the investor will need to compensate the level of risk).

There are seven main categories of milestones that most investors assess when evaluating a startup
investment opportunity:

Business Planning

– Team Building

– Market Traction

– Legal

– Operations

– Product Development

– Founder Leadership

The specific milestones that you need to achieve within each categories varies depending on the type of business and the stage of capital that is being raised(startup round, seed round, series A, etc).

In this post, we’ll be focusing on the milestones that demonstrate market traction.

What is Market Traction?

According to Naval Ravikant, the Co-Founder of Angel List, market traction is simply defined as
“quantitative evidence of market demand.” Traction is proof that somebody wants your product, it communicated momentum in market adoption.

Why is Market Traction Important?

Per usual, it all boils down to risk for an investor. The more market traction you can demonstrate the less risk there is in the investment.

How Do You Demonstrate Market Traction?

Adequate market traction will vary at each round of capital simply because you have limited resources
to demonstrate it. Furthermore, one of the major reasons that you are raising capital is because you
want to grow your current traction.When raising capital from Friends, Family, and Founders in the Startup Round the amount of market traction that you can demonstrate is limited. You likely don’t have a product developed that is ready for market, so traction in the form of sales is not attainable. However, you can show potential traction by demonstrating the size of the market and trends that support your product claims and solutions.

Additionally, you can conduct primary research such as surveys and conversations with potential
customers and/or partners to help validate your value proposition. Lastly, you can put together a clear marketing plan to demonstrate how you will reach potential customers.

When raising Seed capital from Angel investors you will need to take your market traction to the next
level. This includes obtaining some Beta testers and ideally, some paying customers. You’ll need a full scale marketing plan that proves a significant market opportunity exists based on what you’ve learned about the market to date.

Ultimately, you need to prove that you understand the sales cycle for your business.

Lastly, when raising Series A capital and beyond from Venture Capitalists or institutional investors you need to show how you will scale the business. By this point, you want to deploy the capital raised in earlier rounds to not only show that there is a demand for your product but that you can scale the product. In order to demonstrate this you need to understand what it costs to acquire a new customer and what the lifetime value of that customer is.

If you have a question about your Startup or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Angel Investments Soar in the U.S. Along with the Tech Coast Angels

Angel Investments Soar in Q1 along with Tech Coast Angels

Angel Investments Soar in the U.S. Along with the Tech Coast Angels

The Q1 2014 Halo Report was released recently by the Angel Resource Institute, Silicon Valley Bank and CB Insights

In a collaborative effort to raise awareness of early-stage investment activities by angel investors the Halo Report researches and analyzes angel investment activities and trends in North America.

This quarter’s report card will one most investors in the U.S. will be proud to share.

“Median angel round size increases to $980k, while pre-money valuations rise to $2.7 million in the quarter”

What’s this mean for Startups looking to raise capital?

It is one of the best times in history to get funded.
Especially, if your startup relates to the Internet, Healthcare, or Mobile, which make up 71.5 % of deals in the quarter.

“Opportunities are great for startups seeking funding today,” said Rob Wiltbank, Vice Chairman of Research, Angel Resource Institute.

Are you a California based Startup? Consider your ability to get funded that much more likely. California angels invested heavily locally accounting for 1/3 of all deals.

One investor network, Tech Coast Angels, seized the spotlight and proves that “your network, is your net worth.” Tech Coast Angels secured the “strongest network” spot on the Q1 Halo Report out of 370 angel groups, alluding to their greater ability to raise capital, as well as offer strategic expertise in a given area.

Perhaps this is due to their investor membership application process itself, which puts network and community 1st and money 2nd.

“You might think it’s to make money, but for many of us it’s a way to give back to the community, to help build successful companies and to participate in the satisfaction that comes from this involvement. And we hope to make money, too.”

Tech Coast Angels claims to be largest angel investor network in the Nation. Since 1997, and TCA has helped their portfolio companies attract more than $1.4 billion in additional funding. TCA is a catalyst in helping build Southern California’s economy into a thriving center of technology and entrepreneurship.

Feeling inspired and ready to #GetFunded?
Tech Coast Angels is hosting a quick pitch competition in San Diego Thursday Sept 25th, 2014.

Quick Pitch is a must attend event for entrepreneurs looking to jump-start their ventures and for investors seeking to learn about the latest innovations in Southern California. Be sure to say hello to The Startup Garage team at the event!

Whether you have a question about your pitch or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

How Long Does It Take to Raise Capital?

How Long Does It Take to Raise Capital? from The Startup Garage

How Long Does It Take to Raise Capital?

Welcome to video Fridays
from The Start Up Garage

A place where Tyler Jensen, The Startup Garage’s founder, answers questions directly from viewers

Key Take Aways From Video:

1) The average time is somewhere between three to six months for both you Angel round and your Series A round.

2) It really breaks down into three major steps. There’s preparation is step one. Pitching and due diligence is step two. Negotiating and closing the deal is step 3.

3) Preparation, this can take anywhere from one to three months on average

4)Pitch your potential investment opportunity to them. If they’re interested they’ll move into due diligence, which means they want to find out a lot more information out about you and your business. This step two can take 1-3 months as well.

5) Negotiation and closing the deal. Getting all the terms down that you and the investor will agree upon into some legal documentation. This can be done anywhere from one week to one month.

Complete Transcript below:

Question= “How long does it take to raise capital?”

Tyler Jensen: That’s a great question, one that I get all the time. The answer is that it varies. The average time is somewhere between three to six months for both you Angel round and your Series A round. It really breaks down into three major steps. There’s preparation is step one. Pitching and due diligence is step two. Negotiating and closing the deal is step 3.

In step one preparation, this can take anywhere from one to three months on average. This is where you put together your business plan, your pitch deck, your capital strategy, and achieve any business milestones that investors are going to want to see before you raise capital.

Once that is all done you go into pitching and due diligence. This is where you identify the potential investors, contact them, and then pitch your potential investment opportunity to them. If they’re interested they’ll move into due diligence, which means they want to find out a lot more information out about you and your business. This step two can take 1-3 months as well.

And then if you get through that process and they’re still interested, then you move into negotiation and closing the deal. This si simply getting all the terms down that you and the investor will agree upon into some legal documentation. This can be done anywhere from one week to one month.

Whether you have a question about your business plan or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Mistakes to Avoid When Pitching to a VC

Venture Capital Mistakes to Avoid from The Startup Garage

Mistakes to Avoid When Pitching to a VC

Avoid the “How Embarrassing!” Moment

No one wants to look dumb — especially while requesting a significant amount of money. As a growing business, it is important to have a firm grasp on the capital raising process — especially if your goal is expansion. The number one concept to understand about Venture Capital is that it is for businesses with established revenue looking to scale up.

If you are not to this point yet, seek angel investment or look into crowdfunding.

Regardless, the tips here of what to avoid will help you plan for the road ahead.

Not Enough Focus on the Financials

A VC firm will make the decision of whether or not to invest in your business primarily based on the numbers. There is an expectation of risk, but the assumptions and projections — as well as past revenue — will need to suggest a healthy return in order to be considered.

[pl_blockquote pull=”right” cite=”From ‘Pitching A VC Why Financials Matter’ by David Hornik”]
“It is almost assuredly the case that an early stage company’s projections are wrong. In the last decade I have only seen one company actually hit the numbers they pitched me on. The rest of the companies have missed by varying degrees of big time. But the real question when listening to a pitch isn’t whether the company will actually hit the numbers they are projecting, but rather what those projections say about the entrepreneur and the business? Is the entrepreneur focusing on the right things? Do the financials make reasonable assumptions? If the assumptions are anywhere close to right, is there a big interesting business to be built? Smart investors will dig into your financials to get a better sense of how you are thinking about your business.”
[/pl_blockquote]

 

Insufficient Market Validation

You will be expected to have accumulated some sort of customer base. Merely providing hopeful statistics on the market will not help prove the target’s willingness to adopt the product, or that there is even a viable business in discussion.

 

Requesting an NDA

Don’t ask an investor to sign a Non-Disclosure Agreement, even if it is just to protect your grandmother’s secret sauce recipe. An investor won’t sign an NDA… ever. And you will look like an idiot for asking.

 

Unconvincing Exit Strategy

What you’re selling the VC firm is a stake in your company over a given growth period. Their reason for buying in is to receive a large sum once the business has reached its growth goals. In order to be attractive, present a clearly defined exit strategy. Sell them on the opportunity.

 

Replacing Conventional Introductions with Digital Advances

With what has been said on the importance of the numbers, note that a VC firm is not investing in a product or even the business per se. They are investing in you, the founder. Maintaining a professional level of communication is extremely important. Introductions should first be made in person. If you’re not sure how to go about meeting these people, start networking. Local events and groups are a good way to start. Resourcefulness and the ability to network are traits an investor at any level would be interested to see.

Always remember your audience.

 


Whether you have a question about Venture Capital, or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

What to Know about Venture Capital

What to Know about Venture Capital from The Startup Garage

What to Know about Venture Capital

What to Know about Venture Capital

Venture Capital (VC) firms collect money from a collection of wealthy individuals, insurance companies, educational endowments and pension funds.1 These assets are allocated over a portfolio of stocks, bonds, real estate, etc. Typically between 5% — 10% are assigned to “Alternative Investments.”

The alternative investments are the high-risk/high-reward class of assets and are what is available to fund startups.

VC firms are typically set up as limited partnerships with two types; limited and general partners. Limited partners provide the funding in the form of a Capital Commitment, or obligation to pay when called upon. It is the responsibility of the general partners to put together deals that are attractive to their counterpart, in exchange for a percentage of profit.

VC firms knowingly make high-risk investments. The funding they provide is in exchange for equity in the company, and like all things when dealing in risk — the higher the risk, the more expensive it is. Your risk as a startup will be determined by the information and confidence you present. Ownership required by the VC firm can range between 15% — 25%.

The funds raised in a VC round for a tech startup serve one major purpose — scaling.

VC firms evaluate businesses that have a proven track record and product. Candidates must be able to present evidence to the market and sales potential and are interested in either growing up or out (geographically or for enterprise). This limits who this applies to primarily, but not exclusively, to tech businesses.

In order to be accepted by a firm, the numbers must work. VC firms work in the millions and billions, and will expect a model that has the capacity provide a large exit. While most VC recipients do not reach the numbers required for acceptance, confidence in the company’s potential is expected.

Of the millions of companies created every year, just a few thousand get VC funding. Nearly every tech company you recognize has been funded by VCs, including: Apple, Amazon, Google, Facebook, eBay and PayPal.


1 The Nuts and Bolts of Business Plans – MIT Course 15.S21. By Joe Hadzima (nutsandbolts.mit.edu)
 

Whether you have a question about Venture Capital, or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Building a High-Tech Startup Team

Building a Tech Startup Team from The Startup Garage

Building a High-Tech Startup Team

Aligning the Startup Team Strategy with the Capitalization Strategy

The single most important factor to raising capital for any tech startup is the management team.  This is true for early stage funding as well as venture capital funding.  A bonafide team is the assurance that the idea can be executed and that the business can scale when the time is right.  Furthermore, when faced with adversity only great teams can respond to competitors, markets, funding environments, staff departures, PR disasters and the like.

Importance of the startup team from The Startup Garage

When building the team, avoid these common myths and mistakes:

  • A team is not one person and investors rarely want to invest in one-man shows.  While some investors will be willing to help you build your team, they will not be willing to invest in your startup if you are not willing to distribute responsibility and bring on diversified expertise.
  • Never confuse the number of years worked with experience.  Credibility is based on accomplishments and relevant experience.  Furthermore, a startup works differently than a large corporation.  Try to build a team with startup experience as these individuals will be far more likely to understand the importance of flexibility, perseverance, collective success and team playing.
  • Have a diversified team.  One recipe for failure (business failure and capital raising failure) is building a lopsided team weighted to one function of the business.  Don’t hire people with skills and qualifications similar to yours.  If you have a technical background and you are focused on product development, consider a co-founder with a sales and marketing background that can focus on selling your world class product.
  • Hire based on functionality and avoid having too many C’s.  Rather, give titles such as VP of Engineering, Product/Technology, Sales, Marketing, Finance, etc.  This helps to better divide the work, make people accountable, and show investors just why each founder/hire is key to the organization.
  • Don’t make everyone a founder.  Be sure to leave plenty of equity for investors.  You will likely need to raise more rounds of capital than you originally anticipated.  Having too many co-founders will only lead to your eventual dilution.
  • Hiring the right people at the right time is key.  You shouldn’t hire a senior executive from an established company for an early stage startup.  On the flip side, when it comes time to scale the company, the founder and CEO may need to relinquish their CEO title and hire a CEO with the ability to drive efficiency, make incremental process improvements and expand on the established market presence.  Below are some tips for aligning the startup team with the capitalization strategy.

Early Stage

With little to no revenue, many early stage entrepreneurs turn to the Co-Founder model to build credibility for their startup when raising seed capital.  This is not a bad strategy when done correctly.  The reality is that over time most founders will have their differences.  While you should be prepared to give up a large portion of the company’s equity to a co-founder, it is important that one founder maintains a majority share and creative control.

Additionally, be sure your co-founder is well diversified from your skill sets and traits.  Investors understand that you wont have all the pieces to the puzzle at this early stage.  But, the more business functions that you can divide among the original team the better.

Seed to Series A

For most tech startups, the Series A round allows the team to expand by making some key hires.  Typically, these hires fall into 2 buckets: product development and sales.  The CEO of the company will be in charge of leading the company by making these key hires, product managing, driving sales and understanding the companies financial situation.  This leaves the CTO / Senior Architect to focus on product development and managing the recently hired engineers.  On that note, it is important for high-tech companies to keep tech development inhouse.

Series A to Series B

Series B capital signifies that the company is ready to scale.  Key hires at this stage should reflect this strategy.  First, hire an office manager that can double as an admin assistant thereby allowing founders to not get bogged down in minutiae and focus on growing the business.  Hire a VP of Finance that can increase profitability by monitoring operations, legal fees, HR expenses, office space and the like.  Hire a diversified base of sales reps.  While consultative reps are key to building new business with big accounts, relationship managers are key to retaining those accounts.

 

Whether you have a question about your management team or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Seed and Series A Technology Funding Report

Capital Raising Trend Report from The Startup Garage

Seed and Series A Technology Funding Report

Tech Seed and Series A Medians and Averages Show Little Change

Despite some notable early-stage Juiced and Jumbo Series A round investments in tech firms such as GitHub and Clinkle, the average and median Seed and Series A transactions are showing little change.

Juiced Series A deals typically range between $8M and $15M.  Companies raising this type of capital typically have substantial market traction and boast teams of 20+ professionals.  These deals resemble traditional Series B investments.

Jumbo Series A deals typically range between $15M and $60M.  Companies raising this type of capital typically have been bootstrapped for quite some time, boasting revenues of $10M+ and looking for institutional capital to grow fast with goal of reaching a not too long term IPO.

Average and Media Seed and Series A Deals

The average tech Seed deal has stayed consisted at $800K with the media at $50K as outlined in the graph below:

Average and Median Tech Seed Deal Size from The Startup Garage

 

The average tech Series A deal reaches $5.1M with the median at $3.35M as outlined in the graph below:

Average and median tech Series A deal size from The Startup Garage

 

 

Looking at these early-stage deals by sector we see that Internet Seed deal averages declined to $770K while medians increased slightly to $530K.  Meanwhile, mobile Seed deal averages grew to $830K with medians also increasing to $520K.

Average and median Internet Seen deal size from The Startup Garage

Average and median mobile Seed deal size from The Startup Garage

Within Series A, median deal sizes in the mobile sector are also growing faster than the internet sector:

Average and median Internet Series A deal size from The Startup Garage

Average and median mobile Series A deal size from The Startup Garage

All data and graphs thanks to CB Insights.

 

Whether you have a question about early-stage tech financing or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!