Why Seed Rounds Are Growing as Startups Shrink
Tomasz Tunguz
JULY 27, 2025
We can decompose the decline to understand what reduced the small seed round & why it matters for founders today. VC fundraising dynamics represent the largest driver, accounting for 46% of the decline. between sub-$5M deals & VC fundraising shows a powerful relationship: as funds grew larger, small rounds became scarcer.
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