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Managing Partner @ SpringTime Ventures | Host @ VC Minute podcast

If you missed SEED CRUST: State of the Seed Venture Market event last week, you can download the report and watch the recording. Here's what I expect to see in the coming year as it relates to Seed *phase* venture capital: 🐖 The "pig in the pipe" (the exit backlog) will clear this year, which is great for late stage, but it won't be felt at Seed until next year. 🔁 Which means more of the same this year for Seed: more shut downs 😢, more extension rounds 🌉, more pressure on founders to stretch their existing capital 💸. It also means the bifurcation at Seed will continue through this year. 💫 3-Round Seed is the new normal. Pre-Seed, Seed, Seed 2, call it what you will, Series A isn't coming back down to $20-30m valuations. Mind your dilution to make that work. 📈 Seed 2 valuations will continue to go up over the next year, covering territory in the $20-30m post range that used to be a small Series A. 📉 But there will be less capital available in the Seed phase than in the last three years, and less of that will be deployed into first checks. How did we end up here? Here's the full story: https://lnkd.in/gwuGVSii What do you think? What would you add to this? Check out the recording to hear the full presentation and get Peter Walker's take on it, too. (Thanks for coming Peter!) #venturecapital #vc #fundraising #seed #startups

SEED CRUST

SEED CRUST

vcminute.substack.com

Aaron Stachel

Partner at FirstMile Ventures

7mo

Great summary, Rich, these are the biggest questions facing seed companies and their investors. Curious if you guys covered the expectations for founder/team ownership at Series A? If 3-rounds of seed is new normal, will Series A investors accept the dilution that came with that, or will every A have some degree of recap?

Kathleen Hale

Partner Builders + Backers | VC Investor & Entrepreneurial Program Lead | Helping to incubate, grow and scale ideas for solving our greatest challenges

7mo

Super insightful webinar. When's they next? 😆

Cullen Gallagher

Entrepreneur | Veteran

7mo

I love when you put these reports out. Thanks for sharing!

Peter Walker

Head of Insights @ Carta | Data Storyteller

7mo

Had a blast (even with a crusty topic)!

Jeff Erickson

Forecastr | Startup Advisor | Angel Investor

7mo

This was a fantastic event!!!

Mary Beth Hazeldine

Helping technical experts & product specialists improve their win rate on pitches. 829 clients helped to-date with training that had an immediate, positive impact on their results. Will you be next?

7mo

Excited for the next wave in Seed phase. 🚀 Amazing trends ahead, agree? What's your insight? Rich Maloy

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