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.