Seed rounds are getting bigger because investors want to deploy more capital at once, and large seed funds can't afford to write tiny checks. This pushes round sizes up and pulls in multi-stage funds, reshaping early-stage financing.
Ooh, if I want extra cushion now, I need a three and a half million dollar. And I think we've been in this feedback loop around. Sizes have gotten slightly larger, and in response, people raise bigger funds, which has the effect of pushing round sizes even higher. And eventually you get to a point where seed rounds are so big that multi stage funds are like, well, I could write a check in a round of that size. And I really do think this is the tail wagging the dog. I think seed rounds have gotten bigger because the people writing seed checks want to deploy capital in bigger chunks for two reasons. One is they want companies to be capitalized to do the work that they think needs to get done. And two, you can't deploy a $500 million seed fund a million dollars at a time. It just doesn't work. And so as a result, you know, we do precede.
