The length of time it takes to successfully complete a seed funding raise has risen to fresh highs, new data has shown, underscoring the challenges facing startup founders as they look for sources of capital to grow their business.
The average duration of a $1m+ seed funding round rose to a staggering 3.3 years in 2024, data from Crunchbase shows, more than double the average length of time in 2014 as investors take longer to committing cash to startups.
Pre-seed funding rounds of over $250k fared better, with an average funding duration of 1.6 years, but this remains several months slower compared to a decade ago.
The professionalisation of early-stage funding is thought to be a major contributor to the elongated timelines, with mature VCs increasing rigour, scrutiny and due diligence on seed funding rounds. VCs shunning smaller seed rounds in search of bigger deals is thought to be another contributor….
