SaaStr 799: The Series A Landscape in 2025: Insights from Chemistry VC’s Ethan Kurzweil | The Official SaaStr Podcast: SaaS | Founders | Investors | Podwise
This episode explores the evolving landscape of Series A funding in the venture capital market, particularly within the SaaS and AI sectors. Against the backdrop of a decline in deal activity from 2021's peak, the discussion highlights the increasing time gap between seed and Series A rounds—now averaging two years. More significantly, the conversation emphasizes that while averages can be misleading, this extended timeframe necessitates a revised approach to seed funding, potentially involving multiple seed rounds to bridge the gap. The guests delve into the factors influencing funding decisions, noting a premium for AI-driven companies that demonstrate strong momentum, raving customer reviews, and clear articulation of their vision and capital allocation plans. For instance, the discussion cites a 20% to 60% premium for AI companies across seed to Series B rounds. In contrast to the "frothy" market of 2021, where triple-double growth was often sufficient, the current environment demands higher growth rates and a more nuanced understanding of metrics, emphasizing the importance of "lovability" and sustainable momentum over short-term gains. Ultimately, this analysis underscores the need for founders to develop robust, adaptable plans that account for market fluctuations and prioritize long-term value creation.
