July 12, 2018

Democratization of Startup Financing

Over 11,000 FinTech startups are operating around the world across 15+ segments, with payments and lending startups consistently being among the most funded and represented. In the past decade, average deal sizes have grown significantly for startups in late-stage rounds, while seed-stage companies possibly lost their former appeal to an increasingly risk-averse VC community (and institutional investors). It’s never been easier to set up a business – all software necessary to set up essential functions is on the market today (Stripe Atlas, Holvi, Quickbooks, etc.). Given the team has critical human functions covered, mere financial survival is the persistently problematic part, whether a startup has a great proposition, or not. In 2010, the average sums offered were $6.84 million for seed-stage companies, $20.31 million for early-stage VC rounds, and $26.64 million for VC rounds. In 2017, the average figures plummeted to $3 million for seed-stage companies but grew to $41…

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