The Series A Gap in VC is Real and is Widening. Here’s Why…

1. A surge in new VC funds now crowd the Seed space

Innovation in VC is long overdue, but not without consequences

Venture capital has long been an opaque industry. That opacity traditionally favored a handful of legacy venture firms while constraining access to capital and mentorship to all but the most connected and geographically advantaged entrepreneurs. The prevalence of technologies enabling distributed teams and remote workforce collaboration, however, and the innovations in venture capital mentioned above are loosening those constraints.

The growth in Seed stage financings and late stage, $100M+ “mega rounds” have been profound. Yet, traditional Series A/B VC has been relatively flat

Seed funds are typically good at syndicating but few are in a position to lead a Series A round.

Lots of Indians; not so many Chiefs.

2. Series A funds are demanding more traction from startups than in the past.

3. Many traditional early stage VC firms have increased AUM and moved later stage.

The Road Ahead