A study by Silicon Legal Strategy analyzed
early stage investments between 2010 and 2012.
It found that 46 percent of startups that got their
seed funds in 2010 went on to a Series A round by the end of last year, but
only 24 percent that got their seed round in 2011 had done the same. This could
mean that it is taking longer to get a VC round. But it could also be a sign
that a bunch of new companies will be orphaned, as has been predicted in other
reports.
Andre Gharakhanian |
Our data shows a change in how investors are looking at seed deals
Andre Gharakhanian, founder
and partner at Silicon
Legal Strategy, said in a prepared statement. "The seed funding
environment remains incredibly robust and founders continue to receive
favorable economic terms, but market realities are leading investors to ask for
slightly more control and better downside protection."