Introduction

Carta studied seed startups and found where money goes, who gets funded, and why the seed stage is harder and longer than it looks.

What's the problem it solves?

Founders hear mixed signals about seed funding. This report cuts through noise with real data on money, teams, locations, and odds of raising the next round.

Quick Summary

Seed funding in 2025 is growing again, but fewer startups are getting it. More money is available, yet it is concentrated in fewer rounds and top teams. Some sectors like hardware, semiconductors, and AI attract much larger checks and higher valuations than others.

Most startups still give up about 20% of their company at seed. After that, the path to Series A is slow and uncertain. The time between rounds keeps getting longer, and many teams never make it to the next stage.

Location and team setup matter a lot. New York and San Francisco dominate top seed rounds. Teams are smaller, solo founders are rising, and founder breakups are common, even among funded startups.

Key Takeaways

• More seed money exists, but fewer teams get it
• Some sectors raise much larger rounds than others
• Most seed rounds sell about 20% equity
• Reaching Series A takes longer and is not guaranteed
• New York and San Francisco capture most top seed rounds
• Teams are smaller and hiring is slower
• Solo founders are increasing but get funded less
• Founder breakups happen often in early years

What to do

• Plan for a long gap between seed and Series A
• Be realistic about dilution at seed
• Keep teams lean and focused early
• Choose your cofounders carefully
• Understand how your sector affects funding odds
• If possible, build strong investor ties in major hubs

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