Venture capital's series progression is stalling at seed, according to new data released this morning by Carta.

By the numbers: 46% of all seed deals were bridge rounds in Q1 2024, which is the highest bridge rate for any stage since Carta has been tracking such data.

• The rate was 39% for full-year 2024 and just 31% in 2022.

Behind the scenes: One interpretation is that market volatility is having downstream impacts, with startups delaying new priced rounds until they have more valuation certainty.

• Another is that this is less about supply than demand — or the so-called "Series A crunch."
• Most of that is driven by post-2022 VC fundraising difficulties, save for a small number of successful firms who've raised large funds that encourage later-stage checkwriting.
• Series A deal count fell 79% between Q1 2022 and Q1 2025, per Carta.

Why it matters: Startups staying in seed can alter ROI expectations up the stack, assuming that they eventually graduate to letter rounds.

• That's not necessarily a problem for founders or early employees, but definitely changes the math for LPs investing in Series A or Series B-focused funds.

Other Carta findings: Median founder dilution fell from seed-stage through Series D, while the median time between Series A and Series B rounds hit an all-time high of 2.8 years.

• Instances of participating preferred shares rose sharply, reflecting investor demand for greater protections.

The bottom line: Venture capital drove too fast during the ZIRP era, causing its gears to become creaky.

NRG Energy (NYSE: NRG) agreed to buy an asset portfolio valued at $12 billion from private equity firm LS Power.

Why it's the BFD: The Houston-based utility is betting big that generation demand will keep growing, particularly thanks to AI data centers, in a trend that it refers to as the "power market supercycle."

• Investors approved, sending the company's shares up 26% to an all-time high.

The bottom line: NRG will acquire 18 gas-fired generation facilities and a virtual power plant.

• Considerations include $6.4 billion in cash, $2.8 billion in stock, and the assumption of $3.2 billion in debt (less $400m in tax benefits tied to the transaction).
• In a separate agreement, NRG doubled its reservations with GE Vernova for gas turbines.

• Addepar, a Mountain View, Calif., provider of wealth management software for RIAs, raised $230m in Series G funding at a $3.25b valuation. Vitruvian Partners and insider WestCap co-led, joined by EDBI, 8VC, and Valor Equity Partners. axios.link/3S27xPm

• Stash, a New York-based investing and savings platform, raised $146m in Series H funding. Goodwater Capital led, joined by insiders USV, StepStone, Serengeti, University of Illinois Foundation, and T. Rowe Price. axios.link/4jQAdXF

🚑 PhaseV, a clinical trial and development software startup, raised $50m in Series A funding, per Axios Pro. Accel and Insight Partners co-led, joined by existing investors Viola Ventures, EXOR, and LionBird. axios.link/4mjo4MM

• Optimal Dynamics, a New York-based decision intelligence platform for logistics, raised $40m in Series C funding. Koch Disruptive Technologies led, joined by Bessemer Venture Partners, The Westly Group, and Activate. axios.link/4iWjSiY

🚑 Stylus Medicine, a Cambridge, Mass.-based gene editing startup, raised $40m in Series A extension funding. Backers include RA Capital Management, Khosla Ventures, Chugai Venture Fund, Eli Lilly, J&J, Myeloma Investment Fund, and Tachyon Ventures. axios.link/4jUvhkM

⚡ Realta Fusion, a Madison, Wis.-based magnetic mirror fusion startup, raised $36m in Series B funding. Future Ventures led, joined by Avila VC, GSBackers, Khosla Ventures, Mayfield, SiteGround, TitletownTech, and Wisconsin Alumni Research Foundation. axios.link/4mjVevQ

🚑 Clarium, a New York-based health-care supply chain resiliency platform, raised $27m in Series A funding. Northzone led, joined by insiders General Catalyst, AlleyCorp, Kaiser Permanente Ventures, Texas Medical Center Ventures, and 1984 Ventures. axios.link/44zui4B

• Glass Imaging, a Los Altos, Calif., digital imaging startup raised $20m in Series A funding. Insight Partners led, joined by GV, Future Ventures, and Abstract Ventures. axios.link/3Z9ENbi

• Theom, a San Jose, Calif.-based AI security and data governance startup, raised $20m in Series A funds led by Wing VC, with participation from S Ventures, Snowflake Ventures and Databricks Ventures. axios.link/4jKTwlg

• iAltA, a private markets infrastructure startup, raised $20m from WestCap. ialta.com

• EventWood, a Norwegian developer of super-strong woods, raised $15m in a first close of its Series A round. Grantham Foundation led, joined by Baruch Future Ventures, Builders VC, and Muus Climate Partners. axios.link/4dhBp40

• Flam, an Indian mixed-reality marketing startup, raised $14m in Series A funding. RTP Global led, joined by Dovetail. flamapp.ai

• Shakers, a Madrid-based tech freelance worker marketplace, €14m in Series A funding. Partech led, joined by KFund, Brighteye Ventures, Athos Capital and Wayra. axios.link/3H6WbqT

• ClearVector, a Reston, Va.-based provider of identity-driven cybersecurity, raised $13m in Series A funding. Scale Venture Partners led, joined by Okta Ventures, Inner Loop Capital, and Menlo Ventures. clearvector.com

🚑 Olio, an Indianapolis-based care coordination platform, raised $11m in Series B funding. Fulcrum Equity Partners led, joined by Mutual Capital Partners. axios.link/3F704M3

• Adopt AI, a startup helping provide apps with intelligent agent capabilities, raised $6m in seed funding. Elevation Capital led, joined by Foster Ventures, Powerhouse Ventures, and Darkmode Ventures. adopt.ai

• Stackpack, an SF-based vendor stack management platform, raised $6.3m. Freestyle Capital led, joined by Elefund, Upside Partnership, Nomad Ventures, Layout Ventures, and MSIV Fund. tackpack.co

• Haast, an Australian compliance automation startup, raised US$6m in seed funding. AirTree led, joined by Defy.vc, Aura Ventures, and Black Sheep Capital. axios.link/42Sv3EH

• MarvelX, an Amsterdam-based developer of AI agents for insurance claims processing, raised $6m seed funding led by EQT Ventures. axios.link/43dVYtq

🌍 Lignin Industries, a Swedish developer of bio-based thermoplastics, raised €3.9m led by the Carrick family. axios.link/3F70stZ

• Usul, an SF-based defense contracting platform, raised $3.3m in seed funding led by Scout Ventures led, joined by BVVC, Teamworthy Ventures, True Ventures, and YC. usul.com

⚡ Apollo agreed to buy a majority stake in PowerGrid Services, a Hartselle, Ala.-based provider of maintenance and construction services to electric utilities, from The Sterling Group. powergridservices.com

🏈 Arctos is in talks to buy a stake in the NFL's LA Chargers, per Bloomberg. axios.link/3RYyCD5

• BioDue, an Italian food supplements maker owned by The Riverside Co., agreed to acquire the CDMO business of Venture Life Group (LSE: VLG) for €62m. axios.link/3H6DIL2

⚡ Blackstone is in talks to buy TXNM Energy (NYSE: TXNM), New Mexico's largest utility, per Reuters. A March report from Bloomberg had KKR circling. axios.link/4dax6HE

• GTCR agreed to acquire U.K. insurance broker JMG Group, in partnership with existing backer Synova. axios.link/459eFkx

• Potamus Equity invested in VIVE, a compliance and vendor management platform for property managers. getvived.com

• SavvyMoney, a consumer credit score company backed by Spectrum Equity, acquired CreditSnap, a digital lending and pre-qualification software provider. savvymoney.com

• Figma, a San Francisco-based provider of collaborative design software, hhired Morgan Stanley to lead its IPO, per Bloomberg. The company announced in April that it had filed confidential IPO papers, 16 months after scrapping its $20 billion takeover by Adobe.

🚑 Hinge Health, an SF-based digital physical therapy startup once valued by VCs at $6.2b, set IPO terms to 13.67m shares at $28-$32. It would have a $2.9b fully diluted market value, were it to price in the middle, and plans to list on the NYSE (HNGE). Backers include Insight, Atomico, Coatue, Tiger Global, TCV, Industry Ventures, Atomico, Bessemer Venture Partners, and Insight Partners. axios.link/3YHR2M8

• Jena Acquisition II, a SPAC led by blank-check vets Bill Foley and Richard Massey, filed for a $200m IPO. axios.link/4dgkC1k

• Klarna, the Swedish buy-now-pay-later giant, is delaying its IPO until at least the fall, per a local media report. axios.link/4kjPEru

• Perimeter Acquisition I, a SPAC targeting defense and national security companies, raised $210m in an upsized IPO. axios.link/4c3VlXH

• Samsung Electronics is in advanced talks to buy German heating and cooling firm FläktGroup from Triton for between $1.5b-$2b, per Bloomberg. axios.link/4dfzAVj

• ABB (Swiss: ABBN) is weighing a $3.5b sale of its robotics unit, as an alternative to its announced spinoff plan, per Bloomberg. axios.link/4kebAUD

• Robinhood Markets (Nasdaq: HOOD) agreed to buy Canadian DeFi firm WonderFi (TSX: WNDR) for around C$250m in cash. axios.link/3S1zGWQ

• Citigroup (NYSE: C) agreed to sell its private funds business to iCapital. axios.link/4keJoB5

• DFJ Growth raised $1.2b for its fifth fund, per Fortune. axios.link/3SwDFL0

• Immad Akhund, the CEO of business banking unicorn Mercury, announced a $26m VC fund that Axios first reported on in February.

• VMG Partners, a growth equity firm focused on consumer brands and tech, raised $1b for its sixth fund. vmgpartners.com

• Andrew Farwell and Patrick Hodan both rejoined Pritzker Private Capital as vice presidents, after receiving MBAs. ppcpartners.com

• Nicole Glaros joined Matchstick Ventures as a venture partner. She previously was a partner and chief investment strategy officer at Techstars. axios.link/4kj0mOU

• Madhu Namburi is stepping down as global chair of tech I-banking at JPMorgan to join General Catalyst as a managing director. axios.link/4kmNS93

• Ben Napier, former top aide to House Majority Leader Steve Scalise, is joining a16z as a government affairs partner, per Punchbowl. axios.link/3ZdiiCi

🚑 Jon Swope joined Morgan Stanley as head of health-care investment banking. He previously was with Barclays. axios.link/4jLy3bS

U.S. inflation was slightly cooler than expected in April, with the Consumer Price Index rising 0.22% for the month and 2.3% year-over-year.

• Core CPI, which strips out food and energy prices, met expectations with a 2.8% annual increase (the same as in March).

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