All this chatter of a Series A Crunch makes light of a widening gap that looks more like the jaws of death for many seed funded startups, as the gap between Seed and A is becoming a yawning cliff. As part of our VC Outlook for 2013, we incorporated the latest info from CBInsight, as gathered by the ever-diligent Dan Primack. The Crunch data is usually presented as this year’s Seed vs. this year’s A, but because this year’s Seed will seek the A round next year, it really should show Seed shifted one year to the right, as we do below. The growing maw of the Series A Cliff is now vivid.
Bullpen follows the seed funds and provides an alternative to the A, not a bridge, so we watch the Seed-to-A market closely. We have noticed an increasing tendency of the seed funds, as they have grown in size, to inside-bridge their deals towards the A. They may find these are more piers to nowhere than bridges to A.