Seed Investing Bubble Pops

Having talked about the seed implosion in the summer and fall, this will be our last post on the subject. Victor Basta at Techcrunch recently published a startling graph showing the seed-stage financing crash. The red line is the number seed-stage deals—and what it shows is the growth and collapse of a bubble. Basta’s article, […]

Seed Investing is Drying Up

As we outlined in a previous post, the seed-stage venture funding market is dropping fast. It’s cold out there. In her October 18th post Seed-Stage Activity Fumbles Amidst Increases In Late-Stage Dealmaking, Joann Glasner writes that the drop-off is stark: The total number of investment rounds for U.S. seed-stage startups hit the smallest projected quarterly total in five […]

Lessons from 525 CEO Interviews

Adam Bryant did 525 CEO interviews over the last decade as part of his Corner Office column. In this morning’s New York Times, he summarizes the lessons he learned. It’s valuable piece and we won’t spoil it by citing too much. Read it (links are below). Then save it for future reference. Here are a […]

The Unicorn Fantasy

Valuation is the most misunderstood concept in technology finance. Almost nobody seems to understand the obvious, which is that venture financings are not appraisals of businesses. In a financing, the only thing being sold is an instrument. And that’s also the only thing that is priced. If a company does a Series B financing, the […]

Seed Funding Tanks

As reported a month ago, the U.S. seed funding market is crashing. Deal volume is down 40 percent from 2015 highs. And the massive influx of cash has propelled leading funds to seek much larger financing rounds—which effectively excludes true seed-level deals. At the NY Venture Summit we attended in July, VC panelists were emphatic that […]