The transition rate of startups from Seed to Series A funding has seen a notable decline in recent years. From 2017 to 2020, approximately 30-35% of startups successfully made this transition within two years. However, for those that raised seed rounds in 2022, the success rate plummeted to around 17% over the same period. Startups that secured seed funding in 2021 and 2022 typically raised at a post-money valuation of $20-30 million but struggled to demonstrate sufficient traction when seeking Series A funding in 2024. Observers note that many startups from the 2020 and 2021 cohorts may not be able to recover, although there is cautious optimism regarding the performance of the 2024 and 2025 cohorts. Despite an increase in startup wind-downs in 2024, experts argue that this does not indicate a mass failure of the startup ecosystem, as these shutdowns represent only a small fraction of the startups funded in the previous years.