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

Both Sides of the Table

What’s astonishing and few other than those who lived it as startups (I launched my second startup in this era) realize is how profound of an impact that rise of Amazon AWS (S3 & EC2) had on the startup market. As you can see below the number of seed funds shot up dramatically between 2006 and 2014.

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Understanding Changes in the Software & Venture Capital Industries

Both Sides of the Table

They then launched processing capabilities (EC2) and we startups suddenly didn’t need to buy production servers. These funds were active back in 2006 when I was raising money for my second company. Amazon allowed 22-year-old tech developers to launch companies without even raising capital.

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

Both Sides of the Table

Yes, social networks of 2010 have much better usability, have better developed 3rd-party platforms and many more people are connected. It launched open API’s and created a platform whereby third-party developers could come build any app they wanted and Facebook didn’t even want (yet) to take any money from them to do so.