Snapshot of the early stage market in summer 2025: Seed rounds are still thriving, Series A is bifurcated, and AI is rewriting the rules
In a recent workshop hosted by January Ventures, Hayley Barna (First Round Capital) and Lars Albright (Unusual Ventures) cut through the noise for founders about how to fundraising in today’s market:
The seed market is hot, but VCs are hunting for real PMF signals, not vanity metrics.
Series A? It’s now two markets: AI rocketships and legacy businesses.
Below is a tactical playbook for navigating early-stage fundraising in 2025.
Overview of the Seed and Series A market today, plus tips for founders
(1) The Seed market is strong with lots of activity
It’s a great market if you're a founder. For VCs, it's hard to know what will stay differentiated, from both a technical and GTM perspective.
(2) Metrics for raising a Seed? There’s no magic number
There’s a false narrative about there being a revenue number to reach for seed stage.
In reality, there’es no magic number. Investors are assessing: does this company have PMF? Is the GTM motion working? With money, can this scale?
(3) Series A dynamics: a tale of two markets
Series A market has picked up recently, but there are two different markets: new AI businesses, which are experiencing rapid growth, and “legacy” (pre-AI boom) businesses.
For founders, it’s important to know which bucket you're in: If you're not AI-first, you may need to shop around more for investors. The big generalist firms are going where the heat is. Thesis-driven funds may have more flexibility to invest in a non-buzzy AI businesses that have solid traction.
(4) Effects of AI on early-stage rounds
Most companies have an AI component now, but it’s difficult for investors to evaluate the durability of early AI revenue. Expectations about how fast companies are growing havehas shifted in the last 18 months. Because of the AI boom, there is now a premium on fast growth.
(5) Tactical fundraising tips
Be careful about when to start your process. You don't want it to be perceived that you are raising for a long time.
Once you have a deck, the clock starts on your raise.
Time your fundraise with business momentum.
Avoid artificial timelines - if they slip, you can lose credibility.