CB Insights March 20, 2020
Seed-stage funding is a vital step for many growing companies. We dive into the potential impact of the COVID-19 virus on seed investments.
Overall startup funding and deal activity may have already been negatively impacted by the outbreak of Covid-19, as we highlighted in a recent brief.
Seed-stage deals, however, have taken a disproportionate blow.
Seed-stage funding, which accounts for many startups’ first major foray into raising capital, is projected to decline 22% in Q1’20 compared to Q4’19. The number of global seed deals is predicted to fall only 8% during the same period.
The decline in seed funding in Q1’20 is projected to be starker in Asia, where seed funding is expected to fall 37% compared to Q4’19. Seed...