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Why Has Seed Investing Declined? And What Does this Mean for the Future?

Both Sides of the Table

Between 1999–2005 the costs went down by 90% and between 20052010 they went down a further 90%. million and my A Round in 2005 was only $500,000 (and that’s all I ever raised). The reality is that as a result of two major trends the costs of starting a technology startup went down massively.

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How the Seed-Stage VC Trend Began, The Downsides of Unicorns & Much More

Both Sides of the Table

Let me take you back just 10 years ago to 2005 in Silicon Valley where I returned after 11 years of living in Europe. But back in 2005 there were a few people who spotted the trend before others and one of the true pioneers was (and continues to be) Jeff Clavier who founded SoftTech VC. . It is, of course, a very recent phenomenon.

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It’s Morning in Venture Capital

Both Sides of the Table

Cloud computing and the open source movements have brought down the costs of starting a company by more than 90%. So of course returns from 2000-2010 were subpar on average for the industry. LP contributions to VC firms shrunk from 2000 and by 2005-2008 had stabilized to around $30 billion per year.