As per the article circulated in 2017, there will be a dramatic closer of the early-stage Venture capitalists (VC) funding and there are still no qualms about it. Even though VCs are setting out more capital many of the deals for early-stage startups have taken a huge decline. In terms of the seed industry, the whole market changed 1 Year later. In the US, the seed activity has fallen down dramatically and consecutively fourth time this year as well. According to CB Insights and PwC’s MoneyTree, the venture data provider, the major deals excelled at every stage of venture capital. The seed activities decline could be seen in 2018 as it dipped from 31% to 25% with the increasing late-stage deals share and size. The global VC funding on a yearly basis rouse from 21% to $207 Billion and the deal activity shot up from 10% to 14,247 transactions.
The major US deal was the highest in the fourth quarter of 2018, which is $2.1 Million with a start of $1.7 million. The early-stage financings (Series A and Series B)also showed a similar growth that is$8 Million in the Fourth quarter. Right from 2012, the seed deal sizes have been increasing but the seed deals have only been reducing to date. The use of dry powder in the venture ecosystem has pushed it down with higher investments in giant companies. Many seed investment-inspired firms are making their way into the Series A deals. The seed firms are betting and investing in startups rather than the conventional companies with a pre-seed investment strategy.
A bad news for the agricultural sector is that the companies dealing with seed investments are less plus the deals are fewer. The investment raising activity is only inflating rather than balancing. The firms dealing with $100 million to $500 million range investment are the dynamic ones unable to attend startups owing to lack of time to support them. One of the major factors is that the market in 2019 is expected to recession many VC which can help normalize the deal sizes. The bear market will eye only stable, later-stage firms while leaving the early-stage companies to themselves.