Here's a great analysis by Tom Tunguz of Redpoint Ventures of how significant the impact of venture capital firms investing in seed rounds.
"The seed market five years ago was a much quieter market than it is today. As VCs have entered the market, they have increased the number of seeds and the dollars entering the market dramatically. Over time, the increased competition in the market has steadily increased the size of seeds which has now reached a point that the largest seeds have replaced the traditional early Series A."
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