As startups mature, top teams draw majority of capital The concentration of capital around companies that succeed in building outlier teams is also evidenced when looking at the distribution of capital raised over time. In the initial two years post-founding, before most companies have really had an opportunity to signi昀椀cantly strengthen their teams, capital is distributed more widely. As time elapses, however, more and more capital 昀氀ows to the strongest teams. This is, of course, aided by the fact that there is a compounding positive effect from raising capital when it comes to building an exceptional team. The more you raise, the stronger your position when it comes to attracting, retaining and rewarding the best - and most expensive - talent. Distribution of capital raised over time by STAR rating Exceptional (5+) 100 Very good (3-4) Standard (0-2) 80 g n i t a r R A T 60 S y b d e s i a r l a 40 t i p a c f o % 20 0 1 2 3 4 5 6 7 8 9 10 Years post founding Notes: Sources: Powered by An “exceptional” team has a rating of 5 and above. Data is as of 20 September 2023. | 186