The Official SaaStr Podcast: SaaS | Founders | Investors
SaaStr 799: The Series A Landscape in 2025: Insights from Chemistry VC’s Ethan Kurzweil
Apr 18, 2025
Ethan Kurzweil, founding partner at Chemistry VC and former partner at Bessemer Venture Partners, dives deep into the Series A funding landscape. He discusses the significant declines in deal activity since 2021 and extended funding timelines for startups. Kurzweil highlights the fierce competition with more capital concentrated in fewer deals and a drastic drop in graduation rates from seed to Series A, creating a challenging environment for founders. Strategies for adapting to these changes and the impact of AI on funding dynamics are also explored.
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Quick takeaways
- The early-stage venture landscape has become more selective, requiring startups to anticipate longer funding timelines and prepare additional seed rounds.
- Startups must focus on key growth metrics such as net new ARR and customer retention, ensuring these metrics accurately reflect their market viability.
Deep dives
The Importance of Funding Strategy
Startups often face challenges surrounding their funding strategy, particularly regarding the timing and amount of capital needed. It's suggested that many will require multiple seed rounds to bridge the gap to a Series A funding. Founders should develop a clear plan that not only addresses growth metrics but also prepares for the possibility of needing to secure additional funding before reaching critical milestones. Additionally, maintaining an accelerator plan enables companies to increase their burn rate with the confidence that they will achieve the necessary traction to eventually secure a Series A.
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