As venture capitalists focus more on bigger deals, a growing demand is developing for business accelerators and incubators to fund startups, Dreamit Ventures LLC CEO Avi Savar said Saturday at South By Southwest.
The leader of the Philadelphia-based business accelerator said incubators are stepping into the breach created by the shift by VC firms to do fewer early-stage investments. A typical Series A round of funding set up through a venture capital firm today is $7 million to $10 million versus only $1.5 million four or five years ago. The shift is fueling a need for accelerators and other sources of seed-stage financing, Savar said.