Capital Market Squeeze

As the number of seed stage deals continues to grow alongside the number of seed stage investors entrepreneurs face heightened competition when they go looking to complete a Series-A round of financing.

In fact, 2013 saw the highest amount of seed VC deals since 2009. Seed VC deal activity in 2013 jumped 11% from 2012 levels and a whopping 173% from 2010. 

Experts have described the situation in part as the “Series-A crunch” and say the demand for Series-A financing is greater than the available supply. Some firms have started to address the issue by focusing specifically on the Series-A round of financing.

Others have decided to spread their investments across multiple stages of financing to avoid overfunding early stage companies that might not otherwise reach the Series-A round. And others yet continue to focus exclusively on seed stage deals.

Venture capitalist Marc Andreessen expresses optimism for this level of activity by mentioning how we are living through the worlds biggest Darwinian experiment in new ideas. Claiming this is the ultimate petri dish to see which ideas are growth worthy.

Hello, idea!

The difference between good and bad ideas is small. We have already moved beyond so many of the best ideas without even knowing it. Penicillin in one such great example of what I’m talking about.

As an entrepreneur, I want to identify which ideas have been skipped over that are worth exploring further. If I find my way back to those ideas I’ll share them with you here on this blog.