Startup Flash Report

STARTUP FLASH - January 28, 2026

Seed-Stage Funding Surges Past $2.8B in Early 2025, with Research and Security Leading High-Value Bets

TOP 3 STORIES:

1. Research and Security Dominate Seed Funding Landscape — Research startups captured $297.05 million in seed funding while Computer & Network Security attracted $152.90 million across the tracked period, signaling investor confidence in deep-tech and cybersecurity solutions.[1] For founders in these sectors, this concentration suggests strong market appetite and potential for larger initial checks, though competition for capital will intensify as more teams target these proven categories.

2. California Maintains Funding Dominance with 105 Seed Rounds Totaling $762.26M — California continues to lead geographic seed funding concentration, followed distantly by New York with 49 rounds and $228.10 million, while Massachusetts punches above its weight with 11 rounds generating $272.30 million.[1] Founders outside major hubs should note that Massachusetts's higher average check size ($24.75M per round) suggests emerging strength in specific verticals like research and security, creating alternative pathways to capital beyond Silicon Valley.

3. Nerd Apply Secures $3.2M Seed Round for EdTech College Admissions Platform — The education technology sector added a notable data point with Nerd Apply's seed funding announcement, demonstrating continued investor interest in consumer-facing education solutions.[5] This round illustrates that specialized education platforms can attract meaningful seed capital, offering a template for founders building vertical solutions in underserved education markets.

Flash Insight: The seed funding ecosystem shows clear bifurcation between high-volume, moderate-ticket IT & Services deals (54% of rounds at $4.6M average) and niche, high-impact sectors like Aviation & Aerospace delivering blockbuster rounds—including a $76.5M seed for Amca in April 2025.[1] Geographic diversification is accelerating beyond traditional coastal hubs, with Pennsylvania and Washington emerging as above-average research funding pockets, suggesting founders have more optionality in where to build. For the broader ecosystem, this data indicates that 2025-2026 seed funding is maturing toward sector specialization and geographic distribution, rewarding founders with clear market differentiation over generalist pitches.

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Sources:
[1] https://fundraiseinsider.com/blog/seed-startups/
[5] https://www.edtechinnovationhub.com/news/nerd-apply-raises-32-million-in-seed-funding-for-its-college-admissions-counseling-platform