from the end of 2015 to the first quarter of 2016, the founder of their seed wheel financing strategy to a single investor. In the last six months, the seed wheel invested by individual investors increased by 50%. How much of this trend is due to the activity of VC in the seed wheel market caused by
The number in the figure above in
indicates the number of seeds in a year. There are VC involved in the seed wheel marked as red, with no VC involved in the seed wheel marked blue. Since 2010, these two types of seed wheels have increased by 5 times. The number of seeds that did not participate in VC was about 2 times as large as the number of seeds involved in VC. This situation has not changed in the last 5 years.
if we treat the data as a percentage, we can see that the VC involved in the seed wheel is generally maintained at 25% level. Data show that, from the overall financing round, VC activity is not the same as in the past and now.
however, there is a different impact on the size of the financing wheel if there is a VC participation. The median number of VC involved in the seed wheel rose from $800 thousand in 2010 to $2 million 100 thousand in the first quarter of 2016. The growth rate of seed wheel without VC was almost the same as that of VC, but the size of seed wheel without VC was only $750 thousand.
seed round investor and VC investment frequency is not high, but if they really want to invest, will readily invest.
VC to invest in the seed round of the scale of the growth rate is very fast, if this trend continues, this year will be more than $3 million, if the median seed wheel is this level, then it can be called the A round. This is another stage of Jacob’s financing ladder.