Seed through Series C deal activity gained ground in Q2 2025, with deal sizes up between 5.5% and 22% and valuations rising by as much as 60% compared to Q1. While this reflects improving confidence in early-stage ventures, Series D+ deals told a different story, with both capital raised and valuations declining sharply. These declines, paired with a reduced number of mega late-stage rounds, underscore continued investor selectivity at the top end of the market.
This bifurcation also reinforces what we’re seeing on the ground: startups are raising larger Seed rounds to bridge longer fundraising timelines, blurring the lines between traditional Seed and Series A structures. The data bears this out: 21% of companies that raised a Seed round in Q2 2023 have now raised a Series A, nearly doubling the graduation rate from the prior year.
Key Takeaway: The Q2 data shows a venture market favoring earlier bets on high-quality teams, especially those positioned to extend their runway until their next financing. For founders, now may be the time to raise strategically and focus on building metrics that drive investor conviction.
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