Raising money is one of the most talked about aspects of building a startup. But how fast should you raise your next round? What’s the right time gap between funding stages? In this in-depth guide, we break it down stat by stat, helping you understand the pace at which successful startups raise capital and how you can position yourself for smart, well-timed fundraising.
1. The median time between Seed and Series A rounds is approximately 18 months
Why 18 months is the sweet spot
For most startups, raising a Seed round gives you just enough capital to build a solid MVP, hire a few key team members, and start testing your market. But it’s not forever money. Investors typically give you around 18 months of runway because that’s long enough to show traction but short enough to maintain urgency.
The 18-month timeline is a balance. It forces discipline while giving room to execute. At this stage, you need to build fast, learn quickly, and ideally, hit a key milestone like revenue traction, product-market fit, or rapid user growth.
How to manage your 18-month runway
Divide your time into three phases:
- First 6 months: Build and launch.
- Next 6 months: Test, iterate, and find traction.
- Final 6 months: Start prepping for Series A.
Don’t wait until you’re out of cash to raise. You should ideally start fundraising when you have 6–9 months of runway left. This keeps you in control and helps avoid desperate bridge rounds.
If you’re not ready for Series A by 18 months, think about raising an extension or bridge round with a clear path forward.
2. Top-performing startups often raise Series A within 12 months of their Seed round
Moving faster than the average
Some startups move at lightning speed. They raise Seed and hit critical milestones quickly — sometimes within 6–9 months. These are usually founders with prior experience, a hot market, or very early traction. If you’re in this bucket, you don’t have to wait the full 18 months.
A 12-month turnaround to Series A is common among high-growth startups in markets like AI, fintech, or dev tools. If you’re raising that quickly, your narrative must be tight and your traction strong.
Signs you’re ready earlier
You might be ready to raise earlier if:
- You’re growing 15–20% month over month.
- You’ve hit $500K+ ARR within 9 months.
- You’re seeing strong user retention and repeat engagement.
- You’re getting attention from inbound investors.
Be ready to tell a story that justifies the fast raise. Investors will ask, “Why now?” If your metrics and story align, there’s no reason to delay.
3. The median time from Series A to Series B is 18–24 months
What changes between A and B?
The jump from Series A to B is where the game changes. While Series A is about product-market fit, Series B is about scaling what works. You’ll need to prove you can build a business, not just a product.
This stage often involves growing your team, expanding into new channels, and fine-tuning your sales engine. Investors want to see predictability — recurring revenue, customer retention, and efficient growth.
Hitting milestones for Series B
Here’s what gets you ready for Series B:
- Growing ARR toward $3M–$5M.
- Repeatable sales processes with clear metrics.
- CAC and LTV starting to stabilize.
- A clear plan for how new capital will accelerate growth.
Give yourself time — 18–24 months is not generous. Scaling takes time, especially if you’re hiring and training a team. But also be aware: raising too late can lead to a flat round if growth slows.
4. The median time from Series B to Series C is 24 months
Growth takes longer at scale
Once you’ve hit Series B, your startup is no longer just “early-stage.” Series C investors expect serious growth, bigger markets, and solid execution. This is often the phase where startups move beyond one product or market.
The timeline to Series C stretches longer — often 2 years — because proving scalability takes time. You’re likely adding layers of complexity: more teams, more geographies, and deeper operations.
Preparing for Series C
What helps:
- Cross-functional leadership team.
- $10M+ ARR and strong YoY growth.
- Operational efficiency and forecasting ability.
- A compelling vision for becoming a market leader.
Expect deeper diligence. Investors at this stage aren’t just buying a story — they want hard proof that you’re building a durable, scalable company.
5. Startups in hypergrowth sectors (e.g., AI, SaaS) can raise new rounds in under 12 months
Speed matters in hot markets
AI startups in 2023 and 2024 often raised back-to-back rounds every 6–9 months. If you’re in a red-hot market, speed can be a competitive advantage. Investors rush to back winners early, and rounds come together faster.
But hypergrowth fundraising is not for everyone. It requires:
- A fast-moving team that can keep pace.
- A clear lead in technology or execution.
- A market that’s expanding fast.
Playing the game right
Use momentum to your advantage. If your product is gaining fast adoption, don’t wait. Investors will often offer term sheets earlier if they sense a breakout.
That said, don’t over-raise and bloat your team. Fast funding doesn’t mean fast spending. Stay focused on product and users, not vanity metrics.
6. YC-backed startups average about 13 months between rounds
What YC teaches about pacing
Y Combinator startups have a unique fundraising rhythm. Many raise a large Seed or pre-A round right after demo day, then aim for Series A about a year later.
This 13-month pace works because it forces urgency without panic. YC founders are trained to focus on traction and iterate quickly. If you follow a similar path — raise, build, grow, raise again — you’ll be in good shape.
Making the YC timeline work for you
Even if you’re not in YC, emulate their speed:
- Set short, focused milestones.
- Report progress weekly.
- Talk to users constantly.
- Ship fast, learn faster.
13 months is a stretch goal, not a requirement. But aiming for it keeps you sharp.
7. 60% of startups raise a new round before reaching profitability
Fundraising before profit is normal
Don’t wait until you’re profitable to raise. Most startups — around 60% — raise money before hitting profitability. That’s not a red flag. It’s how the game is played.
Profitability can take years, especially in software. Investors know this. What they want is progress: growth, efficiency, and a path to future profitability.
What matters more than profit
If you’re pre-profit, focus on:
- Strong unit economics.
- High retention and engagement.
- Growing revenues with controlled burn.
- A clear financial model showing when profit becomes feasible.
You’re not expected to be cashflow positive early. But you are expected to use capital wisely and grow consistently.
8. Startups that reach $1M ARR typically raise Series A within 3–6 months
The $1M ARR milestone unlocks funding
For SaaS and subscription-based startups, hitting $1 million in annual recurring revenue is a strong signal. It often becomes the trigger to raise Series A — and it usually happens within a few months of crossing that mark.
Why? Because $1M ARR shows there’s real demand, pricing works, and customers are sticking around. That’s what Series A investors want to see — proof that the foundation is solid.
Make the most of your $1M moment
Once you hit $1M ARR, get your pitch ready fast. Don’t delay. Investors want to fund momentum, and your growth rate post-ARR is just as important.
Here’s how to act:
- Have 3–6 months of metrics ready to show continued growth.
- Polish your narrative: why now, why you, why this market.
- Use customer testimonials and cohort data to show retention.
Use this milestone as a springboard. If you can keep growing 10–15% month over month, your round can come together quickly.
9. Only 40% of startups raise a Series A after a Seed round
The funnel is tight
The jump from Seed to Series A is tough. Only about 4 in 10 startups that raise a Seed round ever go on to raise a Series A. That’s a sobering stat, but an important one.
Why do so many startups stall here? A mix of factors: no traction, market misfit, poor metrics, or just not enough differentiation.
How to beat the odds
To move forward, you’ll need more than just a good product. You need:
- Traction: strong user growth or early revenue.
- Retention: proof that customers stick around.
- A clear, large market.
- A vision that gets investors excited.
Be honest with yourself. If you’re not hitting your metrics, consider a pivot or extending your Seed round instead of forcing a weak Series A.
10. Startups with strong unit economics raise follow-on rounds 35% faster
Efficiency wins the race
Unit economics — the cost to acquire a customer vs. the value they bring — matter more than ever. Startups that can show a healthy CAC:LTV ratio, payback period, and margin profile tend to raise faster.
Investors are no longer impressed with growth at any cost. They want smart growth. If your unit economics are solid, it signals that your business model is working.
What to measure and improve
Focus on:
- CAC (Customer Acquisition Cost): How much do you spend to get a new user?
- LTV (Lifetime Value): How much revenue does one customer generate over time?
- Payback period: How long does it take to earn back your CAC?
The tighter these numbers are, the faster you’ll fundraise. Be ready to break them down in simple terms and show how they’ve improved.
11. Venture firms often expect 2x revenue growth year-over-year between rounds
Why growth expectations are high
The general rule of thumb is: double your revenue each year. If you’re at $500K ARR, they’ll want to see $1M+ next year. Then $2M, then $4M. It’s aggressive, but it’s what investors expect if they’re going to fund you again.
Growth is the signal that your product is working, your market is big, and you’re executing well. Fall below 2x growth, and the fundraising conversations get harder.
Planning for 2x growth
You don’t need miracles — you need consistency:
- Plan quarterly revenue goals.
- Focus on the highest-converting acquisition channels.
- Invest in customer success to reduce churn.
- Align your team behind growth targets.
Hit these goals, and your next round becomes a lot easier to raise.
12. The average time from Seed to exit (via M&A or IPO) is 7–9 years
This is a long game
If you’re in it to build a company, not just a product, plan for the long haul. Most startups that do exit — whether through acquisition or IPO — take close to a decade to get there.
This means your fundraising strategy needs to be sustainable. You can’t rely on hype forever. You’ll need to build fundamentals that last.
Playing the long game well
Here’s how:
- Keep your cap table clean — avoid unnecessary dilution.
- Don’t over-hire early. Scale teams in sync with growth.
- Raise only what you need at each stage.
- Build relationships with acquirers and public market investors early.
You don’t need to rush. But you do need to stay focused.
13. Bridge rounds are raised within 6–12 months post-round when traction is weak
The reality of bridge rounds
Sometimes growth doesn’t go as planned. Maybe product-market fit is still shaky. Or sales cycles are longer than expected. In those cases, startups often raise a bridge round — usually 6–12 months after the last round.
Bridge rounds help you extend runway and hit the goals you missed. But they also come with risks — they can signal weakness if not positioned right.
When to raise and how to position
If you’re considering a bridge, be transparent:
- Share what went wrong — and what’s different now.
- Show signs of improvement.
- Present a short, focused use of funds.
- Keep the valuation flat or with a small discount.
A bridge isn’t failure — it’s a second chance. Use it wisely, and you can bounce back stronger.
14. Top 10% of startups raise rounds every 9–12 months
Speed isn’t just for show
The best startups raise quickly because they grow quickly. If your metrics are strong and you’re in a fast-moving market, investors will compete to fund you again. That’s how the top 10% keep moving — one round every 9–12 months.
This doesn’t mean you should always raise faster. But if your traction is excellent, don’t hold back just because you feel it’s “too soon.”
How to know if you’re in this category
You might be ready to raise sooner if:
- You’re growing 15%+ monthly.
- You’ve exceeded your post-round goals early.
- You’re hiring ahead of plan.
- Investors are reaching out.
Use the momentum. Strike while the iron is hot, but stay disciplined.
15. In downturns, median time between rounds increases by 30–50%
When markets slow, so does fundraising
During economic slowdowns, fundraising takes longer — often 30 to 50 percent more time. Investors become cautious, due diligence gets stricter, and fewer rounds get done. Startups that could have raised in 12 months might now need 18.
This was evident during the COVID-19 downturn and again in the 2022–2023 tech reset. Valuations dropped, and timelines stretched. Startups had to cut burn, extend runway, and focus on fundamentals.
Adapting to a slower environment
Here’s what helps:
- Raise before you need to — start early.
- Build relationships with investors long before pitching.
- Extend your runway through cost control.
- Focus on retention and existing customers.
If you’re raising during a downturn, set expectations accordingly. You’ll need more time and stronger proof points.
16. Pre-seed to Seed usually takes 12–15 months
From idea to first traction
Pre-seed gives you a starting shot — usually $100K to $1M — to validate your idea, build an MVP, and talk to early users. Moving from there to Seed typically takes around 12 to 15 months.
Why that long? Because you’re doing a lot from scratch: finding the market, shaping the product, building the team, and testing assumptions. It’s messy, and that’s normal.
Making it to Seed efficiently
To move forward, focus on:
- Building something users actually use.
- Collecting clear user feedback.
- Creating early growth signals (waitlists, pilots, small revenues).
- Building a narrative around your learnings and potential.
Don’t rush to raise Seed. Make sure your foundation is strong. Seed investors want to see momentum, not just an idea.
17. 70% of Series A startups raise at least one SAFE or bridge before Series B
Funding doesn’t always come in neat packages
Even after raising Series A, most startups — around 70% — raise some form of intermediate capital before they’re ready for Series B. This can be a SAFE, convertible note, or even a priced bridge.
Why? Because real growth takes time, and revenue doesn’t always scale in a straight line. These in-between rounds help extend runway or double down on what’s working.
When and how to raise a mid-round
These rounds are easier to raise from insiders or friendly angels. Use them when:
- You’re close to major traction but need more time.
- You have a hot new opportunity you want to pursue now.
- You’re in a fundraising gap, but metrics are improving.
Keep it clean. Avoid complex terms or excessive dilution. Treat it as a short-term bet on the future.
18. Startups in enterprise software take longer between rounds than B2C startups
Why B2B moves slower
Selling to businesses takes time. There are longer sales cycles, more stakeholders, and higher customer expectations. That’s why B2B or enterprise startups usually take more time between rounds than their consumer counterparts.
While a B2C app can go viral overnight, enterprise software often grows steadily over quarters. This pacing impacts fundraising schedules too.
Navigating B2B timelines
To manage this, plan for:
- Sales cycles of 3–9 months.
- Proof-of-concepts (POCs) and pilots before full contracts.
- Gradual expansion within customer accounts.
Your fundraising story needs to highlight long-term value, customer retention, and high contract sizes. It’s not about speed — it’s about stability.
19. Repeat founders raise next rounds 25% faster than first-time founders
Experience builds trust
If you’ve built and exited a startup before, investors trust you more. That trust translates into faster fundraising — up to 25% faster than first-time founders.
Repeat founders know how to build teams, manage capital, and avoid common mistakes. They also have networks that open doors faster.
How first-timers can close the gap
If this is your first startup, don’t be discouraged. You can still move fast if you:
- Surround yourself with experienced advisors.
- Build early relationships with investors.
- Show you’re a fast learner with a clear plan.
- Over-communicate progress and transparency.
Even without a track record, traction and clarity can speak louder than resumes.
20. In Silicon Valley, the average time from Seed to Series B is just under 3 years
The Bay Area clock runs differently
Startups in Silicon Valley tend to move fast — but not always as fast as the hype suggests. On average, it still takes around 3 years to go from Seed to Series B, even in this high-speed ecosystem.
Why? Because even with access to talent and capital, building a real business takes time. Smart founders don’t rush just to keep up with others — they raise when they’re ready.
Balancing speed with readiness
Here’s how to pace yourself in a fast ecosystem:
- Don’t compare yourself to others blindly.
- Use your Seed round to build solid traction.
- Raise Series A only when you’ve found product-market fit.
- Move to Series B when your growth is repeatable.
Three years isn’t slow — it’s realistic. Focus on making progress, not beating the clock.
21. Series C to D or later can take 30–36 months unless scaling aggressively
Late-stage takes longer
Once you’re raising Series C or beyond, everything slows down. Investors ask more questions. They want deeper proof of scale, efficiency, and leadership strength. It’s common for these rounds to take 2.5 to 3 years to line up.
At this stage, you’re raising to enter new markets, make acquisitions, or prepare for IPOs. It’s a different game — more about scale than speed.
Making the most of the time
Here’s what you should focus on:
- Building a mature leadership team.
- Tracking metrics like net retention and gross margins.
- Launching second or third products.
- Expanding internationally or into new verticals.
Be methodical. These rounds are big — $50M, $100M or more. Precision matters.
22. 82% of startups that raise Series A do so within 2 years of founding
Early momentum matters
Most startups that make it to Series A — about 82% of them — do it within the first two years after they’re founded. That tells you something important: the window for proving your early story is short.
Investors want to see traction fast. They want to know if your team can build, launch, and grow in the early innings. Waiting too long without progress can signal risk.
How to move toward Series A within 2 years
If you’re on the clock, here’s where to focus:
- Ship fast. Get your product into users’ hands early.
- Iterate constantly based on user feedback.
- Hit milestones like revenue, growth rate, or retention within 18 months.
- Build your investor network as you go — not just when you’re ready to raise.
If it’s been more than 2 years and you’re still pre-Series A, it’s not game over. But you’ll need a clear story about why now is different and why this next round makes sense.
23. AI startups in 2023–2024 often raised rounds within 6–9 months of each other
The AI fundraising race
Artificial intelligence was one of the hottest sectors in 2023 and 2024. As a result, many AI startups raised new rounds every 6 to 9 months. Investors were eager to get in early, fearing they’d miss the next breakout.
But that kind of speed only works if your traction is explosive. AI startups that showed rapid user growth or proprietary models were the ones getting term sheets fast.
How to raise quickly in a hot sector
To do this right, you need:
- Something defensible — like your own model or unique dataset.
- Rapid user adoption or strong enterprise interest.
- Clear product-market fit indicators.
- A vision that goes beyond a single product.
Speed is a privilege, not a plan. You still need a foundation. Don’t just chase the trend — show how your product solves a real problem better than anyone else.
24. Startups raising international capital face 20–40% longer timelines
Global capital, slower clocks
If you’re raising from international investors — either outside your country or across regions — expect the timeline to stretch by 20 to 40 percent. That’s due to legal processes, time zones, compliance, and cultural differences.
While the money might be worth it, especially if it comes from a strategic investor, it’s not fast money. You’ll need to build relationships and manage the logistics.
Tips for smoother cross-border fundraising
- Start building relationships well in advance.
- Have your legal and financial documentation in order.
- Hire counsel who understands international deal structures.
- Be patient and proactive — communication matters more here.
Don’t rely on international investors as your only option unless you’ve accounted for the delay.
25. 70% of biotech startups take over 24 months between rounds due to trial cycles
Why biotech is a different beast
Unlike software, biotech has long development cycles. It can take years to move from lab results to human trials to regulatory approval. That’s why most biotech startups take over 2 years between funding rounds.
Investors in this space understand the timelines — they’re betting on science and future approvals, not short-term traction.
What biotech founders should focus on
- Clear trial milestones and regulatory checkpoints.
- Data generation and validation from pre-clinical or early-stage trials.
- Strong scientific advisory boards and partnerships.
- Transparent communication about timelines and risks.
Biotech fundraising is more about progress in science than revenue. But the clarity of your roadmap is key.
26. Startups in FinTech raise 15–20% faster than general tech due to market demand
Speed fueled by demand
FinTech remains one of the fastest-growing segments in the startup world. Thanks to growing demand from consumers and businesses, FinTech startups tend to raise rounds 15 to 20 percent faster than those in broader tech categories.
From payments to embedded finance to credit tech, investors are eager to fund solutions that can tap into large financial markets quickly.
How to take advantage of FinTech momentum
- Highlight regulatory readiness and compliance from day one.
- Show early signs of monetization — even pilot revenues matter.
- Emphasize partnerships with banks or financial institutions.
- Build a user-friendly product that scales easily.
FinTech moves fast, but trust and security matter. Make sure your backend is as strong as your pitch deck.
27. The average number of rounds before acquisition is 3.5
You’ll likely raise multiple times before the exit
On average, startups raise about three to four rounds before being acquired. This includes Seed, Series A, B, and possibly a C or bridge round. It tells you that exits take time — and capital.
That doesn’t mean you should always raise more. But it does mean you should be prepared for multiple fundraising cycles, each with new challenges and expectations.
How to prepare for long-term fundraising
- Think several rounds ahead — don’t optimize only for the next raise.
- Build relationships with future acquirers early on.
- Focus on sustainable growth and retention.
- Keep dilution in check by raising only what you need.
Acquisitions don’t just happen — they’re often the result of years of relationship-building and execution.
28. Only 10–15% of startups raise rounds on schedule predicted in original pitch decks
Plans change — and that’s normal
It’s easy to write a 24-month plan and put milestones in a deck. But only 10 to 15 percent of startups actually raise their rounds on the schedule they predicted. Most either raise earlier because of success — or later due to delays.
That’s not a failure. It’s the reality of startup life. Markets shift. Products evolve. Team changes happen.
How to stay flexible and focused
- Reforecast every 3–6 months based on new data.
- Be honest with your team and investors when things shift.
- Maintain investor updates even when you’re not fundraising.
- Don’t tie your identity to your timeline — tie it to your progress.
Being adaptable is more valuable than being “on time.”
29. Startups with Tier 1 VCs raise next rounds 20–30% faster
The signaling effect is real
If your last round was led by a top-tier venture firm, you’re likely to raise your next round 20 to 30 percent faster. Why? Because it’s a signal to the market that you’ve been vetted by smart investors.
Tier 1 VCs also open doors. They make intros, help with hires, and provide credibility that early-stage startups often lack.
Getting the most from your lead investor
- Keep them engaged — regular updates, asks, and milestones.
- Use their networks to meet next-round investors.
- Co-author your growth narrative and fundraising story.
- Show them results — they’ll amplify you if you execute.
Choose your lead investor wisely. They’re not just writing a check — they’re shaping your fundraising future.
30. The fundraising window per round typically lasts 3–6 months
It’s not just the pitch — it’s the process
Each fundraising round, from start to close, usually takes between 3 to 6 months. That includes prepping your deck, having meetings, getting term sheets, and finalizing legal work.
This means if you want to raise in July, you should start planning in March. You’ll need to tell your story many times, get rejected, and refine as you go.
How to run an efficient round
- Start building a target list of investors early.
- Nail your pitch and refine it quickly based on feedback.
- Keep track of conversations — build momentum.
- Create urgency by setting a timeline for soft closes.
A smooth fundraising process is a project in itself. Plan it like you would any key product launch.
Conclusion
Raising capital is never just about timing — it’s about having the right progress, the right story, and the right plan. Whether you’re raising every 9 months or every 30, what matters most is clarity, discipline, and momentum.
