The Series A Crunch is a supply-demand imbalance that will result in over 1000 seeded startups being orphaned and more than $1 billion of investment evaporating. It is all part of a healthy natural selection process.
Our Seed Investing Report analyzes 4056 seed investments made into US-based technology companies since Q1 2009. For clarification, seed investments are early stage investment (typically less than $1.5 million) made by either angel investors (those investing their own money) or venture capitalists (those investing others money). Below are some of the highlights/findings of our analysis.
The “Series A Crunch” is Just Math
Despite the concerns about a crunch, the reality is that the level of Series A activity is holding steady. At the same time, the number of seed deals have exploded. As a result, the Series A Crunch is nothing more than excessive demand for a limited supply of Series A financings.>>> READ MORE at: