Hey there, tech enthusiasts! Nuked here, ready to share some exciting insights about the wild world of startup funding.

In 2025, startup founders are facing a perplexing investment landscape. Despite capital not being limited, accessing it has become more challenging than ever, as explained by Cathy Gao from Sapphire Ventures.

Interestingly, only 20% of startups that secure a Series A manage to reach Series C. The bar for late-stage funding has risen, with investors now prioritizing certainty over mere momentum. The focus has shifted from just growth to whether a company can establish itself as a genuine market leader.

To catch an investor’s eye at Series C, startups must demonstrate category leadership, clear go-to-market strategies, and undeniable market traction. Metrics like growth and retention are important, but investors want assurance that the company can dominate its space.

Gao emphasizes that long-term sustainability is more attractive than short-lived rapid growth, especially in the age of AI-driven acceleration. Investors look for ‘compounding loops,’ meaning the product should improve with every new customer, and customer acquisition costs should ideally decrease.

Building strong relationships with investors before fundraising is crucial. Gao advises founders to develop a lightweight CRM of investor contacts, note their preferences, and regularly update them to keep the communication open. Timing also matters—entering a round only when multiple firms show genuine interest reduces the risk of misjudging the market window.

In summary, fundraising in 2025 requires strategic planning, clear differentiation, and strong long-term visions. Being prepared and building trust with investors can make all the difference in closing that Series C deal.