A new report from Embroker, the leading provider of insurance to venture backed startups, analyzes the venture capital middle market and successful startups under $1 billion to make sense of large scale fundraising and VC medians in the startup ecosystem. By looking at a sample of some of the thousands of startups Embroker works with, the company highlighted geographical differences in venture capital, funding and revenue averages, and how the size of startups might correlate to funding success.
The report titled A Look Into VC Funding in 2019 found that 28 percent of U.S based startups start acquiring capital in the pre-revenue stage, but more than 60 percent of startups end up stalling and fail to make it to Series A funding and beyond. Media focused startups are the most successful in obtaining funding, raising a total average of over $88 million, with fintech, internet, and hardware startups following in highest average total of all rounds.
Embroker also found that as companies move through rounds of funding, VCs invest more money, with 42 percent of startups raising more than $20 million in their Series B round. The report also shows how certain states where VC has long dominated, such as California and New York, are more likely to close the funding to revenue gaps, whereas Colorado shows significant gaps between obtained investment and average startup revenue.
“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.”
