{"id":284,"date":"2010-06-30T16:01:38","date_gmt":"2010-06-30T20:01:38","guid":{"rendered":"http:\/\/blog.payne.org\/?p=284"},"modified":"2010-06-30T16:01:38","modified_gmt":"2010-06-30T20:01:38","slug":"coming-seed-crash","status":"publish","type":"post","link":"https:\/\/payne.org\/blog\/coming-seed-crash\/","title":{"rendered":"Coming Seed Crash?"},"content":{"rendered":"

In a recent blog post<\/a>, Paul Kedrosky wrote:<\/p>\n

[T]he super-seed crash is coming. We have silly numbers of companies being seeded — I had someone at a well-known, larger venture fund tell me yesterday in San Francisco that they were seeing dozens of Series A-seeking newly angel-funded companies a week. Valuations are escalating as super-seeding angels compete against one another, while fourth-quartile incumbent VCs jack prices to buy deals through dint of having more money to put to work.<\/em><\/p><\/blockquote>\n

I think he’s spot on<\/strong>.<\/p>\n

Between angel friends, friend starting seed funds, VC friends doing seed investments, and VC friends starting seed funds out of their venture funds, it’s getting a little absurd. \u00a0 This hasn’t felt right for a while, and I think Paul nailed it.<\/p>\n

Some argue this supply of capital is nothing but good for entrepreneurs. \u00a0I disagree, and Paul touches on this as well:<\/p>\n

[M]ore companies seeded means more full-cycle money required to break through the noise and competition, which while drive dilution of seed investors who can’t follow-on in subsequent larger rounds<\/em><\/p><\/blockquote>\n

Easy and excess capital creates a “weedy ecosystem”, which makes it harder for everyone. \u00a0Even if you’re the best idea in that ecosystem, the bar is raised by those around you.<\/p>\n","protected":false},"excerpt":{"rendered":"

In a recent blog post, Paul Kedrosky wrote: [T]he super-seed crash is coming. We have silly numbers of companies being seeded — I had someone at a well-known, larger venture fund tell me yesterday in San Francisco that they were … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-284","post","type-post","status-publish","format-standard","hentry","category-entrepreneurship"],"_links":{"self":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/posts\/284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/comments?post=284"}],"version-history":[{"count":0,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/posts\/284\/revisions"}],"wp:attachment":[{"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/media?parent=284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/categories?post=284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/payne.org\/blog\/wp-json\/wp\/v2\/tags?post=284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}