Mega Series A Funding Masks Slowing Seed-to-A Progress, Says MGV Partner

Global venture activity this year has produced at least 114 Series A rounds of $100 million or more, according to Crunchbase data released in late September. More than 70 percent of those megadeals went to artificial-intelligence companies, underscoring the sector’s dominance in the current funding climate. For founders still operating at the seed stage, the headline signals a tightening of the pathway to the next financing milestone.

In the United States, the third quarter saw 272 Series A rounds, a 28 percent decline from the 377 rounds recorded a year earlier. By contrast, seed activity held up better, with 984 rounds versus 1,059 in the same period last year. The median U.S. seed round rose to roughly $3 million last year, three times the size of the 2018 median, yet only a fraction of those companies are advancing. Crunchbase reports that just 24 percent of firms that raised a seed round of $1 million or more in 2023 have moved beyond seed, and the figure drops to 16 percent for the 2024 cohort, down sharply from the 55 percent or higher rates seen through 2020.

Andy McLoughlin of Uncork Capital told Crunchbase News that Series A investors now look for companies generating $2 million to $3 million in annual recurring revenue (ARR), with some firms demanding $4 million. The typical interval from seed to Series A has stretched beyond two years, and founders who cannot meet the revenue bar with at least six months of runway are advised to consider a smaller follow-on round rather than chase a distant Series A.

Atomic, a New York-based supply-chain planning software startup founded in 2023, illustrates a path that aligns with the new expectations. The company secured a $3 million seed round in April 2025, right at the current median, led by Madrona and DVx Ventures, and then closed a $12.5 million Series A led by Madrona and Klass Capital roughly 17 months later. The deal reflects the emerging pattern where funds ranging from $100 million to $500 million typically lead Series A rounds, making it essential for founders to identify which investors are active at their stage and to engage them well in advance.

Marc Schröder, co-founder and managing partner of MGV, emphasizes that the Series A bar has become a revenue bar, turning the challenge into a go-to-market problem first. “A company at $2 million ARR with a repeatable sales process that a new hire can run is a stronger Series A candidate than one at $3 million built on founder-led deals that cannot be scaled,” Schröder explained. MGV’s approach begins with a “Sales Jumpstart” interview, followed by a proprietary scoring matrix and a series of workshops covering outbound outreach, funnel management, hiring, compensation, fundraising storytelling and investor introductions. The firm’s goal is to help seed-stage founders build a scalable go-to-market engine that satisfies the new ARR thresholds and positions them for the next round and beyond.

As the venture ecosystem continues to reward revenue traction over product novelty, seed founders will need to prioritize building repeatable sales motions and planning for the round after the next. The shift suggests that the era of megadeals will coexist with a more demanding path for early-stage companies, making disciplined go-to-market execution a decisive factor for future success.