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Today: September 30, 2024
March 18, 2024
1 min read

Bigger Investments: Early investors opt for quality over quantity in startups


TLDR:

Key Points:

  • Early-stage investors are now writing fewer but larger cheques for startup deals.
  • As VCs raise larger funds, the cheque sizes have also moved up, leading to some founders missing out on funding.

Article Summary:

Startups are facing a shift in the investment landscape as early-stage investors are opting for fewer but larger cheques. This change is attributed to VCs raising larger funds, which has resulted in increased cheque sizes. Micro VCs and family offices are stepping in to bridge the gaps left by traditional investors.

This shift has caused some founders to struggle to secure additional rounds of funding, hindering their ability to scale despite initial seed funding. The change in the filtering process has left some startups without funding, impacting their growth potential.

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