One assumes this is good news for start-ups at their early stages.
“As rounds beyond Series A get more competitive, multistage firms aim to secure less expensive stakes in the most promising start-ups as early as possible and then continue to build their position in these companies over subsequent rounds,” PitchBook notes in this recent brief.
The site notes that four large funds announced new seed initiatives. They include Sequoia and Index Ventures, which each unveiled seed funds of roughly $200 million, followed soon thereafter by Andreessen Horowitz and Greylock Partners which announced seed-focused pools of capital with $400 million and $500 million respectively.
PitchBook added that the four announcements amount to $1.3 billion which is significant considering the fact that seed stage investments in the U.S. amounted to $8.7 billion in 2020 and $8.6 billion in the first three quarters of this year.