By: Strategic Advisor Frank Tobe of The Robot Report
Twenty-seven startups were funded in May for a total of $2.5 billion. The top five were:
This month’s $2.5 billion in fundings doubles the January thru April total of $2.5 billion. Thus a YTD of $5 billion!
Four acquisitions occurred in May. The most notable was SPX Corp., the large inspection equipment components manufacturer, which acquired CUES, a Florida robotic pipeline video inspection and rehab company, for $189 million.
It seems like seed rounds are getting bigger and less frequent while Series A rounds are happening later in the development cycle. So says Bessemer Venture partner Amit Karp in a recent post on Medium.
“Most early stage startups we meet these days attempt to raise a $2M-$4M seed investment with some seed rounds expanding even further. These larger seed rounds are often led by a new pool of dedicated seed funds. In addition, the larger funds sometimes also participate in these early rounds, which results in even larger seed rounds (and often higher valuations). Angel investors are often added into the mix to bring more credibility and help with their experience in the early stages of the startup, but it’s a ‘professional’ seed investor who often leads the seed round.”
According to Karp there are several implications to these new large seed rounds:
Reviewing The Robot Report’s Y-T-D 2018 seed rounds, there were 13 fundings averaging $3.8 million each thus confirming Karp’s thesis from our smaller sample of robotics-related fundings.