273 mega-rounds
are becoming more common — and were up almost 12% from 2018 — as tech investors raise bigger and bigger funds to compete for access to the fastest-growing startups.Startups are waiting longer to take outside capital. In 2019, the median age of companies raising angel or seed funding was 2.9 years, continuing a steady rise from the 1.5 years median age in 2012.
The startups that delay are more mature when they go to fundraise, and are able to command bigger deals and valuations, according to the report.Those outsized transactions known as mega-rounds accounted for almost 25% of the capital put into early-stage deals in 2019.
It's a marker of investor interest in these types of deals. They are able to make more informed decisions because late-stage companies can raise money based on their battle-tested business models.The startups making their public markets debut in 2019 are much better funded than their predecessors.
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Source: Reuters - 🏆 2. / 97 Read more »
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