Manatt Ventures Data Analysis June 2023

The Manatt Ventures team constantly evaluates changes in the market, both for our clients and for the Manatt Venture Fund, our internal venture capital (VC) fund. Below are some of the more interesting data points and perspectives we have come across lately that have helped inform our perspectives.

Pre-Seed Burn Rates — Correlating Burn With Success

Charles Hudson of Precursor Ventures provides a look at its portfolio of pre-seed investments and how burn rates correlated with raising a seed investment.

• The average burn rate of pre-seed companies that went on to raise seed funding was $59,333, versus $47,365 for those that did not raise seed capital. The raw difference is not large, but the ability to spend wisely is important. Hudson notes that spending is "more likely an effect, not the cause of success."