Here's a good, summary article by David Blumberg of Blumberg Capital in San Francsico on the structural forces which are leading to a surge in early stage investing by both VC's and angel investors. Blumberg states some very interesting stats:
"Last year, U.S. venture capital firms raised 10 percent less than in 2012, but VC funds focused on early-stage investing raised $9.37 billion, a jump of 51 percent, according to DJX LP Source. In addition, 151 early-stage firms closed funds – more than in the last dozen years. Moreover, investment returns among early-stage venture capital funds are starting to outpace late- and expansion-stage funds, according to the most recent National Venture Capital Association’s (NVCA) performance benchmark, the Cambridge Associates LLC U.S Venture Capital Index."
Click here to read the full article: