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

Is the venture capital middle class disappearing?

4 Jun 2025 · 0 min

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0:22

Short excerpt from a YouTube discussion about pressures on Series A-focused venture funds. The speaker argues that higher entry valuations and difficulty raising later rounds have hurt Series A specialists, reducing the number of firms operating in that space and raising benchmarks for investor returns and follow-on funding.

There's no reason to put more money in and push for that goal. I think a lot of the funds that specialized around Series A for the last handful of years were really rocked by coming in at higher valuations. And so when you think about funds that aren't able to raise subsequent rounds, we're going to see less folks who play around there. So that probably plays into that well. Of like, it's just going to be harder to get seen by people because their benchmarks are just so much higher than they were prior. It is.