article thumbnail

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 2005–2010 they went down a further 90%. million and my A Round in 2005 was only $500,000 (and that’s all I ever raised). Traditional VCs have raised larger funds that allow them to pay slightly higher prices and still hit preferred ownership sizes.

article thumbnail

Understanding Changes in the Software & Venture Capital Industries

Both Sides of the Table

These two trends had a major impact on the computing industry from 2000-2005 but the effects weren’t yet felt by the VC industry. The Emergence of “Open Cloud&# Infrastructure. The biggest change in the software industry beyond open-source was “open cloud.&#.

article thumbnail

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%. For those patient enough to source great companies at reasonable prices and prepared to weather the next inevitable downturn, I believe firmly there will be economic rewards for discipline and patience.