5. Pre-seed rounds have been commonplace, with significant step-ups in average round sizes, and limited runway.
“In their most recently closed funding, the average round size for pre-seed (39%) was $0.25M, seed (42%) was $1.31M, and series A (13%) was $4.85M,” the report said. “The average seed stage company has six months of funding before it will need to find additional capital.”
Founders investing in their own companies were the most common pre-seed investors, followed by their friends and family. Corporate venture capital groups were the least common investors in early-stage companies.
About a third of the startup founders said they received support from an accelerator, but only a quarter of the MTI startups reported support from government grants.