Seed Rounds Are Getting Bigger Again, and Nobody Can Agree Why
Median seed size crossed $5.6 million last quarter, the highest figure the market has recorded.
Median seed size crossed $5.6 million last quarter, the highest figure the market has recorded.
Sophie Alberg spent the past week talking with founders, investors and operators close to seed, most of whom asked not to be named because the conversations were private.
What separates this from previous cycles is the composition of the capital. Crossover funds that retreated in 2023 are back, but they write structured checks with preferences and ratchets that never appear in a headline valuation.
The interesting number is not the total but the concentration. A handful of buyers and a handful of funds account for most of the movement, which makes the market look healthier in aggregate than it feels from inside a cap table.
Competitors are watching closely. At least three companies in venture capital have adjusted pricing in response, and more announcements are expected before the quarter closes.
The Company Wire will continue reporting this story. If you have information to share, contact our newsroom directly — we protect our sources.
Written by
Sophie Alberg
Sophie covers venture financing, late-stage rounds and the investors writing the checks. She joined The Company Wire in 2021 after six years reporting on private markets.
