Seed funding, typically the earliest investment in a startup, is no longer the territory of angel investors and dedicated seed funds. Stealthily, big-ticket venture capital funds that normally make large bets in startups are writing smaller cheques to younger companies as well, marking a tectonic shift in investment dynamics.
"Investors are playing across the entire funding continuum because nobody wants to miss outthe FOMO (fear of missing out) effect," said Sanjay Anandaram, venture partner at Seedfund and an adviser at software product think-tank iSPIRT. "These firms are able to seed the seedlings as they grow and cherry pick the ones that they really want to back with big bucks."
