Made up data for Seed investing. This assumes the first investment is at seed and the follow-on is at Series A.
First investment is at pre-seed and the follow-on before the A.
First investment is at pre-seed and the follow-on at Seed.
First investment is at Series A and the follow-on is at Series B.
Hypothetical market model for AI in 2023 -- pre-seed and seed
Startups are not one "market." Each investor sees different companies, and calculating things like failure rates is hard because not all data is public. To build a strategy, you must first pick a set of market assumptions.
These assumptions will allow you to convey to Limited Partners what deal flow you expect, the level of risk you'll take on with each investment, and the kinds of outcomes you expect to see.
Suggested Markets are assumptions based on some data that are intended to give you a realistic set of defaults. If you think these assumptions are wrong, you can create your own.
Community-Created Markets are market assumption contributed by users who preferred other data sets, or for whom their models required a different set of market assumptions, for example they may be investing in bridge rounds at higher entry prices (or lower follow-on) and assuming different failure rates as a result.