Carta is out with its latest startup funding data (Q2 2024-Q1 2025), and are the Top 5 B2B+SaaS Learnings that every founder needs to know:
#1: The Bay Area Still Owns B2B and SaaS (And It’s Not Even Close)
The Bay Area dominates SaaS funding with 54.2% of all capital — that’s more than 5x the next closest market. If you’re building B2B / SaaS and serious about raising, the Valley’s gravitational pull for talent, investors, and ecosystem density is undeniable. The network effects are real.
#2: The “New York vs. Everyone Else Besides SF” Narrative is Real
New York sits at #2 with 12.0% of SaaS funding, but here’s the kicker — Boston (#3 at 4.8%) and Seattle (#4 at 4.3%) are basically tied for distant third. NYC has 2.5x more SaaS capital than Boston. The coastal hubs are consolidating B2B dollars.
#3: Austin Does Punch Above Its Weight — But Still a Distant #6
Austin ranks #5 overall for total startup funding but drops to #6 for SaaS specifically at 2.6%. Translation: Austin’s got a diverse startup scene, but if you’re pure-play SaaS, you might want to think twice about the “Silicon Hills” narrative.
#4: The B2B and SaaS Funding Concentration is Extreme
Just the top 4 SaaS markets (Bay Area, NYC, Boston, Seattle) control 75.3% of all SaaS funding. That means 3 out of every 4 SaaS dollars are flowing to just 4 metros. Geographic diversification in SaaS? Not happening yet.
#5: Secondary Markets are Getting Crumbs
Markets ranked #7-#10 (DC, San Diego, Miami, Atlanta) are each capturing just 1.1-2.0% of SaaS funding. If you’re in a secondary market, you’re fighting for scraps — or you better have a damn compelling remote/distributed story for investors.
Bottom Line: SaaS remains the most geographically concentrated sector in startups. The rich (coastal) hubs keep getting richer.
Crunchbase’s data is similar:
When Broken Down By Stage, What Do We See?
#1: Bay Area’s Early-Stage Dominance is Actually Growing — 56.8% to 59.0%
Bay Area goes from 56.8% at Seed on SAFEs to 59.0% at Priced Seed. While other markets talk about “democratizing early-stage,” the Valley is actually increasing its stranglehold on the earliest rounds. Network effects compound fastest at the beginning.
#2: Bay Area Has a “Series A Dip” — Drops to Lowest Share at 37.3%
Interesting anomaly: Bay Area’s Series A share (37.3%) is its lowest across all stages. This suggests either (a) Bay Area startups are so well-funded they skip traditional Series A or (b) Series A investors are finally looking elsewhere for deals. The only stage where the Valley doesn’t own 50%+.
#3: Bay Area’s “Series C Recovery” Shows Late-Stage Magnet Power — Back to 52.7%
After the Series A dip, Bay Area roars back to 52.7% by Series C. Translation: You can raise Series A anywhere, but when it’s time for $50M+ growth rounds, everyone comes crawling back to Sand Hill Road. The late-stage investor density is unmatched.
Bottom Line: The Bay Area owns the beginning (pre-seed/seed) and the end (Series C+). Everything in between is where other markets get their shot.
E&Y’s version of the data on venture overall — including Mega AI deals — is even more stark:
