When Investors Get Careful: Why Series A Is Hit First 😬

11 Oct 2026 · 1 min

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Leon Eisen, PhD reports that in the midsize U.S. market, he counted 14, 9, 8, and 6 Series A financing rounds in successive weeks through September 2026. In the most recent week, every Series B round featured a returning early investor, whereas only two of the six Series A rounds did. He explains that Series B financings are typically second decisions made by investors already familiar with the company, while Series A financings are first decisions made by new investors. Consequently, when investors become more cautious, the first‑decision funding (Series A) is the first to be reduced, narrowing the entry point for newcomers. He labels this dynamic “Fundraising Rule 2,” which describes how capital allocation shifts when investor sentiment tightens.

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14, 9, 8, 6. That's how many Series A rounds I counted each week through September 2026 in the midsize US market. In the last of those weeks, every Series B had an early investor coming back. And only 2 of these 6 Series A rounds did. A Series B is usually a second decision by people. Who already know you. A Series A is usually a first decision by people who don't. When investors get careful, first decisions are the first to go. The door didn't close. It got narrower right where newcomers walk in. Fundraising Rule 2. It explains where the money goes, goes when investors get careful.