VC Minute Weekly Recap: SEED CRUST
For the last two years, startups have been circling around in Seed, unable to break through to Series A. This is the Seed Crust.
This week I covered some of the market report that I’ll be presenting on Thursday May 2nd at 1:00pm ET // 11:00am MT.
Special guest, Peter Walker, Head of Insights at Carta, will be joining as well.
Join us on May 2nd for a presentation of our Q1 2024 market report. We’ll cover the market forces that are keeping startups stuck in the Seed phase, discuss paths forward, and share some rays of sunshine that we believe is going to help break through.
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Episode Summaries
222. Seed Crust: The Story So Far
The market conditions driving Seed have been building for the past few years. More Seed funds kept Seed isolated from the later-stage problems... until now.
223. Seed Crust: Backlogs Everywhere
The backlog in the private markets extends from IPOs to PE, all the way down to Series A. It's one of the primary drivers of so many startups stuck at Seed.
224. Seed Crust: VC Allocation Shift
If all Seed & Pre-Seed funds shift just 5% of their allocation from first checks to follow-on checks, there will be $3 billion fewer available for first checks.
225. Seed Crust: This is the Seed Crust
Distributions back to LPs dried up. LPs slowed down their fund investments. VCs had to slow down. The cycle feeds itself.
226. Rays of Hope, Paths Forward
There are rays of hope for the market, but the most important thing is to stay focused on what you can control.
Do you know someone that needs to hear this week’s advice? Share it with them!