article thumbnail

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

Both Sides of the Table

Seed investments are down by any measure (funds, deals, dollars) over the past 3 years in deals < $1 million AND in deals between $1–5 million. thus the rise of “pre seed” investing). It’s very noticeable in terms of funds raised, dollars invested and deals completed. What gives? The “A Round” of my startup in 1999 was $16.5

article thumbnail

Understanding Changes in the Software & Venture Capital Industries

Both Sides of the Table

I will argue that LPs who invest in VC funds will also need to adjust a bit as well. They then launched processing capabilities (EC2) and we startups suddenly didn’t need to buy production servers. When I built my first company starting in 1999 it cost $2.5 million in infrastructure just to get started and another $2.5

article thumbnail

What the Past Can Tell Us About the Future of Social Networking

Both Sides of the Table

Fox bought MySpace for $580 million and then did a deal with Google worth more than the purchase price to serve up ads. MySpace would liked to have owned YouTube but didn’t have the public stock valuation to purchase them at the price that Google did. At the bottom end of the stack is storage (S3) and processing (EC2).