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I wonder if the increase of size of seed round corresponds to startups waiting to seek funding until they are more mature. The second seed round, makes me even
by padobson 10y ago
I wonder if the increase of size of seed round corresponds to startups waiting to seek funding until they are more mature.
The second seed round, makes me even more suspicious of this: are we simply renaming A and B rounds to seed 1 and seed 2 rounds? The increased size of these rounds would seem to imply yes.
Furthermore, I wonder about the lack of stigma in a second seed round. It seems like this would happen a lot if the founders didn't raise as much as they needed, and investors felt they could get favorable terms, perhaps more favorable than the first round of investors - which could mean the exact same terms, but operating on additional months of performance data.
To me, it seems like most of the changes in the State of the Seed Industry are about definitions and semantics.
- mhluongo 10y agoSome of those definitions and semantics lead to different concrete terms. Eg are seed 2's priced rounds? Anecdotally it seems many still aren't, making them materially different from yesterday's series B
- jwilliams 10y agoI think the trend of Seed Rounds being the "old" Series A seems true (even by the comments here). The other element in the landscape is the huge increase in accelerators, AngelList and the like. There are now a lot of options to get that first $100-200k to prove out a business idea.
- api 10y agoWe really should just start numbering them: R0, R1, R2, ..., Rn. It's getting ridiculous.
- bante 10y ago"I wonder if the increase of size of seed round corresponds to startups waiting to seek funding until they are more mature." Yes, but I don't think it's so much that they wait as that there's more competition. People are, in a sense, working longer on their application for funding and since they are further along (and cost have risen in general) they need more money.