Precursor VenturesA classic pre-seed and seed stage venture capital firm

Is seed math broken beyond repair?

16 Jun 2025 · 0 min

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Precursor Ventures argues there is an imbalance in the startup funding ecosystem: many more pre-seed and seed-stage companies have been created seeking Series A rounds, but Series A capital has not grown proportionally. The speaker suggests the imbalance can only be solved by either fewer seed companies (unlikely) or another mechanism (not specified in this chunk).

Think we are in a world where a smaller percentage of companies will graduate because of math, because we've created many more pre seed and seed stage companies in search of Series A rounds, and we have not created a similar amount of Series A capital to fund those rounds. So there's an imbalance. And the only way for the imbalance to get solved is we either need fewer seed companies. Not going to happen.