Series B Crunch Hits U.S. Startups, While Series As Decline Globally

Early-stage funding posted a slowdown in the third quarter, and it wasn’t immediately clear why.

A closer look, however, reveals that for U.S. startups the chief reason appears to be a decline in Series B funding rounds.

Meanwhile, globally, the early-stage slowdown was caused by a pullback in Series A financings.

We’ll start with U.S. early-stage startup investment, which saw a decline of 18 percent in reported funding in Q3 of 2019, compared to Q2.1 The drop came as overall funding remained flat-to-up at other funding stages.

Global Early Stage Slowdown

Globally, reported early-stage investment totals were down just over 9 percent in Q3 of 2019, compared to Q2.

For now, it’s too early to call whether the drop in early stage funding totals should be taken as a warning sign for the startup space.

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