61% of Founders Think They’re Fundable. The Data Says Otherwise.
We’ve now processed over 2,000 pitch decks through SaaStr.ai VC’s FREE AI-powered analysis engine. Try it here. And the data tells a story that every founder needs to hear.
Only 12.1% of the decks are clearly fundable. With a bit of a stretch, perhaps 22.9% of companies that uploaded their decks are fundable by VCs.
That may be a lot, compared to all start-ups out there. But it may also be less than many were expecting.
Let me break down what we’re seeing, why it matters, and what you need to do about it.
The Distribution
When we benchmark these 2,000+ companies against ICONIQ Capital’s, Carta’s, Bessemer’s and Emergence’s top quartile growth standards, as well as our own data, and here’s what emerges:
- Elite (≥100% of benchmark): 243 companies (12.1%)
- Strong (70-99%): 216 companies (10.8%)
- Moderate (50-69%): 160 companies (8.0%)
- Developing (30-49%): 156 companies (7.8%)
- Below Threshold (<30%): 1,231 companies (61.4%)
61.4% are performing at less than 30% of what top quartile companies achieve.
What “Elite” Actually Means
ICONIQ’s top quartile benchmarks represent the growth rates of exceptional VC funded performers at each ARR tier. These aren’t averages. These aren’t medians. These are the companies that VCs actually want to fund.
Companies hitting ≥70% of these benchmarks qualify for A- investment grades. That’s the fundability threshold.
So when we say only 22.9% are fundable, we’re being generous. We’re including both Elite (≥100%) and Strong (70-99%) performers. The reality? Most top VCs will only seriously consider the Elite 12.1%.
The Three Big Lessons
1. Most Founders Are Too Optimistic About Their Metrics
The gap between founder perception and reality is staggering. Over 1,200 companies uploaded decks believing they were venture-backable. They weren’t even close to the 30% threshold.
This isn’t about being mean. This is about being honest. If you’re growing at $50K MRR and adding $8K per month, you’re not ready for a Series A. You’re barely ready for a good angel round.
The math is simple: Top quartile companies at $1-2M ARR are growing at 15-20% month-over-month. At $5-10M ARR, they’re still doing 7-10% monthly. If you’re not in that range, you’re not fundable by tier-one firms. Period.
2. The Market Has Bifurcated Completely
This is the insight that surprised me most: The distance between the top 12% and everyone else is bigger than I’ve ever seen.
Elite companies are crushing it. They’re growing 3-5x faster than the median. They’re raising at 15-20x revenue multiples. They’re getting term sheets in weeks, not months.
Everyone else is struggling. The Strong cohort (70-99%) can raise, but it takes 6-9 months and involves heavy dilution. The Moderate cohort (50-69%) might scrape together a bridge or find a smaller fund. Below that? You’re essentially unfundable until metrics improve.
There’s no middle anymore. You’re either exceptional or you’re in the desert.
What This Means for You
If you’re a founder reading this, here’s what you need to do:
First, get brutally honest about where you stand. Just find out if you are fundable. Or not.
Use SaaStr.ai’s FREE pitch grading and benchmarking tools. Upload your deck. Get the AI analysis. See how you compare to ICONIQ’s top quartile standards for your ARR range.
We’ll tell you exactly what the odds of you getting funded by VCs is today. The exact odds.
If you’re in the Elite or Strong category, congratulations. You should be raising. Your challenge is getting in front of the right VCs and running a tight process.
If you’re Moderate or Developing, don’t start fundraising yet. You’ll waste 6 months and burn relationships. Instead, focus on improving your core metrics. Get to Strong or Elite first. It might take another quarter or two, but you’ll raise 3x faster when you’re actually ready.
If you’re Below Threshold, you have a decision to make. Can you get to Developing in the next quarter with focused execution? If yes, put your head down and execute. If no, consider whether venture is the right path at all. Bootstrap longer. Find strategic investors. But don’t pitch top VCs until your metrics tell a different story.
Second, understand what “fundable” actually means.
It’s not about having a deck. It’s not about having a vision. It’s about having metrics that put you in the top 10-20% of all companies at your stage.
Here’s the threshold by ARR band (top quartile monthly growth rates):
- $0-1M ARR: 20%+ monthly growth
- $1-2M ARR: 15%+ monthly growth
- $2.5-5M ARR: 10%+ monthly growth
- $5-10M ARR: 7%+ monthly growth
- $10-20M ARR: 5%+ monthly growth
If you’re below these numbers, you’re not fundable by tier-one firms. You might find someone to write a check, but it won’t be on terms you want.
Third, use the 90-day sprint approach.
If your metrics aren’t there, don’t fundraise for at least 90 days. Pick the 2-3 levers that will move you from Developing to Strong or Strong to Elite. Obsess over them. Then reassess.
We’ve seen dozens of companies go from Below Threshold to Strong in a single quarter by focusing maniacally on their core growth engine. It’s possible. But you have to be honest about where you are first.
The Opportunity in the Data
Here’s the contrarian take: This distribution is actually good news if you’re willing to do the work.
Why? Because 61% of your competition is nowhere close to fundable. If you can get your metrics to Elite or Strong, you’re competing with a much smaller pool. The top 23% get 90%+ of the venture dollars.
And right now, in late 2025, capital is flowing again. Not to everyone. Not to average companies. But to exceptional ones.
The VCs we’re onboarding to SaaStr.ai VC tell us the same thing: “We have capital to deploy. We just can’t find enough great companies.” They’re not lying. They’re just defining “great” as top quartile performance.
How We’re Using This Data
At SaaStr.ai, we’re using these insights to make the VC matchmaking process more efficient for everyone.
For founders: We’re providing honest, data-driven feedback on whether you’re ready to raise. Not “maybe” or “soon” but yes or no based on how you compare to top quartile benchmarks. This saves you months of wasted outreach.
For VCs: We’re pre-filtering deal flow to only surface companies in the Elite and Strong categories. No more sifting through hundreds of mediocre decks to find the 2-3 worth a meeting.
It’s working. We’re processing 1,200+ new decks per month. The VCs we’ve onboarded are getting 5-10 qualified intros per week instead of 50-100 unqualified cold emails.
Find Out Where You Stand. With No Drama, In One Upload
The venture market has reset. “Good enough” isn’t good enough anymore. You need to be exceptional.
The good news? The data shows you exactly what exceptional looks like. ICONIQ’s top quartile benchmarks aren’t mysterious. They’re public. They’re measurable. You can compare yourself to them today.
Most founders won’t do this work. They’ll keep pitching with Below Threshold metrics and wonder why they’re not getting traction.
But if you’re reading this, you’re not most founders. Get honest about your metrics. Benchmark yourself. If you’re not Elite or Strong yet, fix it before you fundraise.
The VCs will be there when you’re ready. But only if you’re actually ready.
Want to see how your company benchmarks? Upload your deck to SaaStr.ai VC and get AI-powered analysis in minutes. We’ve already helped 2,000+ founders understand where they stand and what they need to improve.
And if you’re a VC looking to see deal flow that actually meets top quartile standards, apply here to join the 100+ firms we’re onboarding in Q4.
