Lacher: Multi-stage VC win rates at Series A dropped from 50% to 1-10%
Robert Lacher · Navigating Fundraising and the VC Landscape Today with 20VC and Visionaries Club · Aug 30, 2024 · at 3:20
Robert Lacher (Visionaries Club) explains why multi-stage VC funds increasingly invest small amounts at Seed to gain an inside track on Series A rounds.
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“Series A has become such a red ocean for VCs competing to enter the rounds that it's just very difficult to win deals. If you were a multi-stage fund five years ago, you would maybe have a 50% chance to win a term sheet in one of your great founders, right? And today you would have 20 funds maybe competing with the term sheet. So your win ratio as a VC firm is maybe going down to 10%, and if others aren't even having more momentum, it's going down to one percent.”
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