Wilson Sonsini is pleased to present the Q1 2025 edition of The Entrepreneurs Report. We’ve compiled a range of data on venture, convertible note, and SAFE financing transactions in which the firm was involved during the first quarter, with the objective of identifying relevant trends in activity and valuation levels for the U.S. venture capital industry in general.

Key features of this edition:

• Valuation Volatility at Later Stages: Seed and Series A valuations remained stable compared to previous quarters. In contrast, Series B valuations rose after a disappointing prior quarter, while Series C and later valuations saw significant declines due to public market uncertainties.
• Market Perspectives: An in-depth interview with Wilson Sonsini partner Bob O’Connor, where he discusses the challenges and opportunities in the climate tech sector, highlighting the potential effects of regulatory changes on the current start-up landscape.
• Fundraise Amounts Analysis: Seed and Series A fundraising amounts slightly declined from the previous quarter but remain robust by historical standards. Series B fundraising experienced a notable surge to kick off 2025, whereas Series C and later amounts decreased.
• Shift in Pre-Seed Financing: Most pre-Seed investments now favor SAFEs over convertible notes. However, post-Seed convertible notes continue to be a popular financing tool for bridge rounds.

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