Ask a venture capitalist if the much-bemoaned “Series A crunch” is real, and they’ll tell you it is.
And then he’ll spend an hour telling you why it’s not.
“Anecdotally, we’re as busy as ever with Series A deals,” said Bob Ackerman, one of the founders of Allegis Capital, a San Francisco investment firm. In a recent phone conversation with VentureBeat, Ackerman spoke about industry-wide yearly figures as well, saying, “There’s been an increase in activity.”
Let’s take a step back: Over the past week or so, news reports have suggested that some types of entrepreneurs are having a hard time raising Series A funding, which refers to the first round of capital a company gets from institutional investors. These entrepreneurs were able to seal smaller “seed” deals, no problem. But when it came time to raise a round larger than $1.2 million or so, they stalled out.
To read the original article: Silicon Valley’s big, dumb angel bubble | VentureBeat
