TechCrunch reports “A curious gap has emerged in the early-stage investment landscape: While emerging startups are able to raise very small, sub-$500,000 rounds, seed and pre-A investors are requiring increasingly higher revenue and market traction milestones before they deploy capital to companies. Lately, it seems as if the single, discrete “seed” round of $1-$2 million has largely disappeared.

The milestones these seed and pre-A investors require today resemble those needed for Series A financing pre-unicorn mania (before 2012), but a large majority of these financing rounds are smaller in size, utilize convertible notes and are not priced like a typical Series A round. At the same time, what is today called a Series A requires metrics and milestones that resemble the “classic” Series B.” Read More