This is a very good analysis Scott Kupor of venture capital firm Andreesen Horowitz on the macro factors driving structural changes in the VC industry. He points out that there have been fundamental changes in both technology (e.g., cloud-based technologies, Saas, etc.) that enable limited startup capital from a Series A round to go to scaling their opex costs. At the same time, the potential markets are larger than ever which necessitates startups needing larger amounts of total capital in order to win.
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