Rise of Seed. To understand today’s trend it’s worth stepping back a decade or so. Prior to then the concept of “seed funds” barely existed and as I’ve argued before the seed fund phenomenon was largely driven by: Open source + horizontal computing + Amazon AWS. In other words, it isn’t that VCs suddenly got smart, it’s that the costs of starting a company went down dramatically.
Mark, there is a brilliant academic paper you should have a look if you haven’t already that basically shows the same point you are mentioning here: https://www.sciencedirect.com/science/article/pii/S0304405X18300631