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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. why the hell has seed financing declined so much in the past 3 years?? As you can see below the number of seed funds shot up dramatically between 2006 and 2014.

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The Changing Venture Landscape

Both Sides of the Table

On the one hand, you’re over paying for every investment and valuations aren’t rational. And as a result of this there are now very robust secondary markets where founders and seed-funds alike are selling down their ownership long before an ultimate exit. That used to be called A-round investing. of the fund.

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The Changing Structure of the VC Industry

Both Sides of the Table

Limited Partners or LPs (the people who invest into VC funds) have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began. ” The new narrative is “will my seed funds be able to fund the prorata of their winners?” The iPhone was released.

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VC Seed Funding is Dead, Long Live VC Seed Funding!

Both Sides of the Table

A few years ago it became fashionable for large VC’s to do seed funding. With open source software (LAMP stack) and cloud computing infrastructure it just wasn’t that expensive to get your company going and founders just wanted to raise less money. I think they definitely qualify as a VC and not a seed fund.

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How Halla Is Using AI To Personalize Food, With Spencer Price

socalTECH

in seed funding, from E&A Venture Capital and SOSV. One day, after they made their first investment, a six-figure sum, we figured out we needed to take this money seriously and not be in school. Three years later, there's no looking back, and we've now raised around $2M in total funding. The company has raised $1.9M

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It’s Morning in Venture Capital

Both Sides of the Table

Looking ahead at the next decade I am excited by what I believe will be viewed as one of the best and most rational investment periods for venture capital due to seven discrete factors: 1. Cloud computing and the open source movements have brought down the costs of starting a company by more than 90%. Thank you, Aaron Sorkin!