Individual seed investors have been an increasingly powerful force in Silicon Valley’s startup funding landscape. But in an onstage conversation at GigaOM’s Mobilize conference in San Francisco Tuesday, two venture capital heavyweights said that while the VC industry has been shaken up by the increase of seed backers, the current environment will likely lead to a fall.
“There will be a day of reckoning, certainly. There are way too many companies getting seed funding,” said Maha Ibrahim, a partner at Canaan Partners. That’s because many of the companies receiving seed funding now are likely to have trouble raising larger amounts of money down the line, she said, since they’ve become used to the kind of terms that only seed investors can offer.
To read the full, original article click on this link: Seed funded startups ripe for shakeout, VCs say — Tech News and Analysis
Author:Colleen Taylor
