News Summary

In the challenging capital market of 2025, startup founders aiming to raise Series C funding must navigate a complex landscape, as explained by Cathy Gao of Sapphire Ventures. Despite capital availability, access remains difficult, with only one in five startups progressing from Series A to Series C. Investors are no longer pursuing momentum but are instead seeking certainty in a company’s market leadership. Series C candidates should demonstrate clear category leadership and sustainable growth, focusing on ‘compounding loops’ where the business strengthens as it scales. Founders are advised to build relationships with venture capitalists early and manage investor relations through a ‘lightweight investor CRM.’ Timing is crucial, and fundraising should commence only when multiple firms express interest, ensuring strategic entry into the market.