What mortality rate from Series C to Series A is cited?

Jason M. LemkinCEO, SaaStr · Co-Founder of SaaStr AI, SaaStr Fund, Adobe Sign

The Evolution of Startup Funding: Insights from a VC Insider

17 Sept 2023 · 1 min

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0:51

A VC insider (Jason M. Lemkin) describes how the startup funding market corrected, beginning in super-late-stage rounds when crossover investors suffered large losses; liquidity dried up starting at Series C and trickled down through Series B to seed rounds. The speaker cites an 80% mortality rate from C to Series A as an example of the severity of the correction.

Questions this video answers

80% (as stated by the speaker).

Chapters

So if it's if, if it is an 80% mortality rate from C to series A series A's need to be what is that five times the math just as like yeah and the value math doesn't work right it doesn't but and I think there has been a correction so the correction evaluation started with the super late stage stuff because what happened is the crossover investors who had come into the market like the tigers and so on they just got their faces ripped off so they basically just got out of the market and and so the super late stage rounds is where liquidity just dried up and then it started trickling down and so you know first series C was hard and then series B got hard I mean everyone who's kind of around earlier can look forward and see oh wait a second there's no one to market my deal anymore I better be like really conservative and it trickles all the way down but seed obviously is the last round for it to trickle down to.