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"Hands down the people who are most concerned about this trend are the angel investors." Wrong. This is not an investor's problem. This is an entrepreneur's
by jsherry 14y ago
"Hands down the people who are most concerned about this trend are the angel investors."
Wrong. This is not an investor's problem. This is an entrepreneur's problem. The angels and VCs will shake this off as all of the combined seed dollars invested over the past couple of years are a relative fart in the wind compared to the greater startup investing arena, which doesn't become really capital-intensive until at least the Series A, and more often Series B stages.
It's the entrepreneurs who are (or at least should be) most concerned. Not the investors.
Edit: here's some cold, hard stats on the Seed VC phenomenon witnessed as of late: https://www.cbinsights.com/blog/venture-capital/seed-investments-series-a https://www.cbinsights.com/blog/venture-capital/seed-investm.... Seed investing continues to be a very real, growing trend, and yes - many startups will be left in the dust come Series A time.
- paulsutter 14y agoWhere's the problem? Anyone care to name high-growth successful seed companies that can't raise an A? Sounds like a great opportunity. I'd love to hear about that. Oddly, nobody has named any specific great companies that can't raise an A. Wonder why that is.
- benologist 14y agoThis comes to mind - https://appharbor.com/page/appharbor-status-update https://appharbor.com/page/appharbor-status-update
- eli 14y agoTo be fair, people are much more likely to brag about getting funded than about being unable to get funded.
- jpdoctor 14y ago> Wrong. This is not an investor's problem. Because investors never worry when 80% of their companies go up in smoke.
- adrr 14y agoThese just need the other 20% to go up in value 5x to break even, and with seed/angel money that is easy to do.
- jpdoctor 14y ago> These just need the other 20% to go up in value 5x to break even, and with seed/angel money that is easy to do. Yes, picking 1-in-5 investments with 5x return is so easy it's a wonder that this investment style hasn't completely taken over the $1-$5M segment of the market.
- hluska 14y agoGreat reply!!