Observation, thoughts, and information.

Seed Is The New Series A Round


The startup investment pool has gotten wider — more investor types, specifically angel investors, have joined the ecosystem.  Angel investors who are investing significant capital into startups have pushed the Series A fundraise further into the future.

Looking at the data collected by CB Insights, the graph below illustrates, there has been a noticeable uptick in companies who’ve raised seed financing exceeding $3 million but who’ve not raised what they call a Series A. In fact, there are more than seven times the number of tech companies with more than $3M in pre-Series A funding in 2014 YTD vs 2010.  And this is only through the first nine months of 2014.

preseed_1We believe the broader the spectrum of the venture capital asset class — to accommodate angel investors — the better.  This allows startups of all kinds have access to the capital they need to scale.