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The Seed Slump


I have written a bit about this topic in recent years, at the end of 2017, and again when the 2018 numbers started showing up. What has happened over the last five years in venture capital is the seed boom stalled out, the late stage market exploded, and the traditional venture capital business (Series A and Series B) largely remained the same except round sizes, valuations, and fund sizes have all gone up. Mark Suster posted a great analysis last night of why the seed stage market has stalled out. It comes down to the fact that the traditional venture capital market has not changed much so creating more supply has not resulted in materially more demand. This chart tells the story well: As Mark explains, the seed market remains alive and well, but it has grown so large that it can’t continue to grow unless the traditional venture capital market grows too and that has not happened, at least not anywhere near the rate that the seed stage market has grown. In a companion post, Mark lays out the new architecture of the startup capital markets: In the first five years of this decade, we saw the seed portion of the market explode. In the last five years of this decade we saw the growth portion of the market explode. But over those last ten years, the middle part, the traditional venture capital market, has not changed much. That’s an interesting observation in and of itself and something that makes me wonder if that is the next shoe to fall. https://avc.com/2019/02/the-seed-slump/

The Seed Slump1


I have written a bit about this topic in recent years, at the end of 2017, and again when the 2018 numbers started showing up. What has happened over the last five years in venture capital is the seed boom stalled out, the late stage market exploded, and the traditional venture capital business (Series A and Series B) largely remained the same except round sizes, valuations, and fund sizes have all gone up. Mark Suster posted a great analysis last night of why the seed stage market has stalled out. It comes down to the fact that the traditional venture capital market has not changed much so creating more supply has not resulted in materially more demand. This chart tells the story well: As Mark explains, the seed market remains alive and well, but it has grown so large that it can’t continue to grow unless the traditional venture capital market grows too and that has not happened, at least not anywhere near the rate that the seed stage market has grown. In a companion post, Mark lays out the new architecture of the startup capital markets: In the first five years of this decade, we saw the seed portion of the market explode. In the last five years of this decade we saw the growth portion of the market explode. But over those last ten years, the middle part, the traditional venture capital market, has not changed much. That’s an interesting observation in and of itself and something that makes me wonder if that is the next shoe to fall. https://avc.com/2019/02/the-seed-slump/

The Seed Slump1


I have written a bit about this topic in recent years, at the end of 2017, and again when the 2018 numbers started showing up. What has happened over the last five years in venture capital is the seed boom stalled out, the late stage market exploded, and the traditional venture capital business (Series A and Series B) largely remained the same except round sizes, valuations, and fund sizes have all gone up. Mark Suster posted a great analysis last night of why the seed stage market has stalled out. It comes down to the fact that the traditional venture capital market has not changed much so creating more supply has not resulted in materially more demand. This chart tells the story well: As Mark explains, the seed market remains alive and well, but it has grown so large that it can’t continue to grow unless the traditional venture capital market grows too and that has not happened, at least not anywhere near the rate that the seed stage market has grown. In a companion post, Mark lays out the new architecture of the startup capital markets: In the first five years of this decade, we saw the seed portion of the market explode. In the last five years of this decade we saw the growth portion of the market explode. But over those last ten years, the middle part, the traditional venture capital market, has not changed much. That’s an interesting observation in and of itself and something that makes me wonder if that is the next shoe to fall. https://avc.com/2019/02/the-seed-slump/

Wild boar attacks a child


   In South Coorg, elephants, tigers, bears attacking men are a common occurrence. But now, a child being attacked by a wild boar is the cause of concern to the people. On Monday morning, a boar attacked a child Lakshmi (6) near Kirgoor Honnikoppa, Ponnampet. After the child's parents started screaming the boar ran into the nearby coffee estate and escaped.    Estate worker Suresh, along with his daughter Lakshmi, started from his relative's house near Maayamudi, in an auto, towards his house in Kirgoor Honnikoppa to start the day's work, when the incident occurred. While walking towards his house, after getting down from the auto at the road near the house, the boar which was in the estate suddenly attacked the child. Though Lakshmi has escaped death, her left leg is severely wounded.    Immediately the villagers rushed to the spot and sent the child, to Gonikoppa government hospital. Since this place belongs to Thithimathi forest area, wild animals from the forest keep wandering into the estates. Karnataka state farmers association Ponnampet division convener Aalemada Manjunath urged the people to be careful regarding the wild animals. (This article is translated by xklsv internet media pvt. Ltd, from shakthidaily.info; the Shakthi Daily is not liable for any errors in translation.)

Feedback


Thanks for all of the feedback on yesterday’s post. There have been about 250 comments to date and a similar number of email replies. Not surprisingly the feedback from the email replies was overwhelmingly supportive of removing the comments. It seems that most of the people who read via email don’t wade into the comments. And they email me directly with comments which often leads to a one to one private conversation. The feedback in the comments was overwhelmingly to keep them. And there were lots of strong arguments for that. I did get one email from a reader who told me the ability to engage in the AVC comments helped him get through a difficult time in college. That got my attention. I also got a ton of suggestions on how to modify the comments to make them more manageable (limiting the number and length of comments, limiting the time allowed to post one, charging people to comment, etc). I like that line of thinking a lot but I am limited in terms of what I can do by the Disqus feature set. I will ponder all of this for a bit and let it all sink it. Thanks for taking the time to tell me what you all think. https://avc.com/2019/02/feedback/