Every investor and entrepreneur knows there is something scary about the current startup economy. There is an enormous amount of angel capital available, while at the same time there is a small amount of Series A and a large and concentrated amount of late stage capital. Industry insiders have affectionately dubbed this situation “the Barbell”, and it has become the most serious threat to the progress that startups have made — since 2008.
At least nine out of ten high-quality angel-funded startups face an unnecessary death, because there is no Series A money to help them survive critical expansion. (See Rip’s post on the rise in late stage capital here.)
To read the full, original article click on this link: Don’t Launch A Company, Launch A Fund (Or The Series A Will Die) | TechCrunch
