Introduction
This report examines completed initial funding rounds on the FounderCatalyst platform from January 2025 through March 2026.
Whether you're preparing to launch a round or benchmarking one already in progress, the data inside covers the metrics that matter most - valuations, dilution, raise sizes, investor behaviour, and scheme usage.
Scope
The data covers rounds on the FounderCatalyst platform with pre-money valuations (PMV) between £500K and £5M, and raise sizes between £25K and £1M. These boundaries keep the findings grounded in typical early-stage activity, preventing outliers at either extreme from distorting the picture.
What did the data show?
- Typical round size is £100K–£250K - nearly half of all rounds fall in this bracket, with the average round size sitting at approximately £156K. Fewer than 3% of rounds exceed £500K, showing that smaller raises are the clear norm, not the exception.
- Average pre money valuation was £2.04M - across the dataset, this gives founders a clear benchmark for typical early stage pricing. Nearly two thirds of rounds fall between £1M and £3M, with the £1M to £2M bracket the single most common at 34.1%. Valuations above £3M are rare, accounting for just 14.6%, and can actively deter investors without strong evidence to back them up.
- SEIS dominates up to £250K - it's used in 92% of rounds at that size. It's the default tax structure for early-stage UK raises, and the 50% income tax relief makes it a powerful tool for attracting angels.
4.Founders are closing smaller initial rounds to get capital in sooner - what we’re seeing is that founders are closing smaller rounds to get needed cash into their business. This means investors still agree to the average valuation of ~£2m but are happy for a smaller round to be closed. Another reason is founders are aware they can close an initial priced round to create their paperwork and get cash into the business, and then use an agile round to effectively tp up the existing round. We haven’t included the agile rounds in this analysis but we would expect to see the rounds grow to ~£250k with dilution between 15-20%. You can check out our cap table maths guide which shows how this works ie: investors in a priced round, is the same as some investors in a priced round, and others coming in later in an agile round (provided the share price stays the same). See table below from the cap table maths guide.
- Median angel ticket size is now approximately £10K - while the average ticket size is higher at approximately £23.3K. This gap reflects the impact of a smaller number of larger cheques, which pull the average upwards. The data shows that angel rounds are usually built from multiple individual commitments, rather than relying on a handful of large investors.
Distribution of round sizes
This chart breaks down rounds by size, showing where founders most commonly set their fundraising targets. Larger raises are the exception rather than the rule: only around one in ten rounds exceed £250K, and fewer than 3% go beyond £500K. Nearly half of all rounds sit between £100K and £250K, making this the most common raise size on FounderCatalyst.
This also reflects the current funding market. With many VCs focused on supporting existing portfolio companies, and new capital often concentrated in areas like AI, larger £1m+ raises can be harder to secure. For many early-stage founders, a focused £250K round is more realistic, more achievable, and often a stronger starting point.
Many founders then use that initial round as a springboard for Agile Funding, allowing further investment to be added over time through adherence agreements. This helps avoid the risk of trying to coordinate every investor at once, giving founders more flexibility to raise at their own pace and move quickly when the right investor appears.
Valuation vs dilution by round size
Dilution increases as raise size grows. In the £500K to £1M range, dilution reaches around 20%, while the average PMV across the dataset sits at approximately £2.04M. At this stage, larger raises do not appear to command meaningfully higher valuations, as there is often limited evidence to justify a significantly higher PMV. As a result, asking for more capital usually means giving away more equity, rather than securing a better price.
This is why many founders choose to close a more modest initial round first. By doing so, they can bring needed cash into the business, create the core legal paperwork, and give up less equity upfront. They can then use Agile Funding to top up the round later as momentum builds, provided the share price remains the same. The practical takeaway is simple: raise what you need now, protect your equity where possible, and return to the market later when traction, revenue, or other milestones give you a stronger basis for a higher valuation.
Distribution of pre-money valuations
Nearly two thirds of rounds carry a pre-money valuation between £1M and £3M, with the average PMV across the dataset sitting at £2.04M. The £1M to £2M bracket is the single most common, accounting for 34.1% of rounds, while valuations above £3M are relatively rare at just 14.6%. For the purposes of this analysis, rounds with a PMV above £5M were excluded to keep the focus on typical early stage raises.
If you are considering a valuation above £3M, tread carefully. Without clear evidence, meaningful traction, defensible IP, or a team with a strong track record, a high PMV is more likely to deter investors than attract them. It can also store up problems for your next round if growth does not keep pace with the implied ambition. The data suggests most founders at this stage anchor around the £2M mark, and for good reason: it is a price that reflects realistic early stage risk while leaving room to step up at the next raise.
Tax scheme usage by round size
SEIS dominates at smaller raise sizes, peaking at 92% of rounds in the £100K to £250K bracket. That is not surprising. At this level, SEIS is often expected by UK investors rather than treated as a bonus.
The more useful takeaway is that founders cannot rely on SEIS alone to stand out. If most comparable rounds are also offering SEIS, investors will look more closely at the quality of the opportunity itself: the strength of the investment story, the use of funds, evidence of traction, the credibility of the team, and how smooth the process feels.
Above £250K, the picture shifts. Half of rounds in the £250K to £500K range use a combined SEIS and EIS structure, taking SEIS up to the £250K cap and allocating EIS beyond that. This can be effective, but it needs to be planned before the round launches. SEIS and EIS shares cannot be issued on the same day, so dual rounds require careful sequencing at closing to protect eligibility under both schemes.
For founders, the practical message is clear: secure advance assurance early, decide how SEIS and EIS will be allocated before speaking seriously to investors, and treat tax relief as one part of the offer rather than the whole investment case.
Investor ticket size distribution
The clearest concentration of investment tickets sits between £1K and £25K, which together account for 65.9% of all individual investments on the platform. The largest single band is now £10K to £25K, representing 26.4% of all tickets, followed by £5K to £10K at 20.1% and £1K to £5K at 19.4%.
Including the sub £1K slice, 72.5% of all investments fall below £25K, reinforcing that early stage rounds are typically built from a broad base of smaller angel cheques. Larger tickets are less common, with cheques of £50K or more accounting for 13.9% of investments, and £100K or more making up just 3.7%.
The median ticket size is now £10K, while the average ticket size sits at approximately £23.3K. This gap shows the impact of a smaller number of larger cheques pulling the average upwards. For founders, the practical takeaway is clear: a healthy early stage round is usually built through multiple angel commitments, rather than relying on one or two large investors.
Summary
The analysis confirms what we suspected: typical pre-seed rounds sit around £156K, with average dilution of 15–20%. One notable finding was the prevalence of tranching even at this early stage - where founders close an initial smaller round (£25k–£100k) to get capital working quickly, then follow with top-up raises to complete the full round.
The dominance of SEIS is equally unsurprising, with 92% of rounds up to £250k making use of it. For any founder raising from UK angels, having SEIS in place isn't optional - it's expected. Getting advance assurance secured before the round opens remains a critical step.
On ticket sizes, the £10k–£25k range dominated, but two things stood out: the continued presence of larger £100k+ cheques, and a higher-than-expected volume of smaller £1k–£5k tickets. That latter point is worth dwelling on. Smaller tickets aren't just capital - they're the foundation of an advocate base. Investors writing modest cheques often become some of a founder's most active supporters, opening doors through introductions, advice, credibility, customers, and hires.
Next steps
Book a call with an expert to learn how FounderCatalyst can help you close your funding round faster, more affordably, and with the right SEIS/EIS support in place.
About FounderCatalyst:
FounderCatalyst helps UK founders get investor-ready, close funding rounds, and build motivated teams. For a fixed fee of £1,495 + VAT, no subscriptions, no percentage of your raise - we handle everything from SEIS and EIS advance assurance and fundraising legal paperwork, to data rooms, cap table management, and EMI and unapproved share option schemes.
