Seed-stage startups are raising larger amounts of money than ever before, yet the odds of advancing to a Series A round have never been lower. New data from Crunchbase reveals a widening gap in the venture capital landscape.

The median US seed round reached roughly $3 million in 2025, three times the median size in 2018. Upper-quartile deals now average $5.6 million, with some rounds exceeding $10 million. That represents a dramatic shift from just a few years ago.

Andy McLoughlin, managing partner at Uncork Capital, said his firm's average seed check has nearly doubled in 18 months, rising from $2.5 million to $4.5 million. Eighteen months ago, he said, an $8 million to $10 million seed round would have seemed unthinkable.

Series A rounds have also grown, with a median of $15 million in 2025 and the top quartile hitting $25 million. That trend has continued into 2026.

Longer Road to Series A

Despite the larger checks, startups are taking more time to reach Series A. Since 2023, US companies have needed over two years on average to raise a Series A after an initial seed round of $1 million or more. That timeline has stretched steadily since 2018, except for a brief compression during the funding boom of 2021 and 2022.

The bar for a successful Series A has also risen. McLoughlin noted that investors now expect $2 million to $4 million in annual recurring revenue, not the previous $1 million threshold. Startups compete not just with direct rivals but with every deal in the venture ecosystem.

Fewer Startups Progress

The graduation rate from seed to Series A has fallen sharply. Through 2020, more than 55% of seed-funded companies advanced to later stages or exited. For companies that raised a $1 million-plus seed round in 2023, only 27% have progressed. For the 2024 cohort, the rate dropped to 24%.

McLoughlin expects the trend to continue, with seed rounds growing even larger and the funnel narrowing further.

Why This Matters

Founders face a tougher environment: more capital at seed, but far less certainty of reaching Series A. That means startups must show stronger metrics earlier to attract follow-on funding. For investors, the stakes are higher as larger seed checks concentrate risk in fewer companies. The changing dynamics reshape the entire early-stage ecosystem, affecting how startups plan their growth and how venture firms allocate capital.