While tech entrepreneurs were busy in 2014 raising money and building startups for products that would make it big in 2015, the number of micro VC’s and mega funds getting active in seed investments increased.
Seed Funding Deals
Seed venture capital funding hit another high in 2014 with 926 seed VC deals for a total of $1.33 billion, according to CB Insights, a company that tracks capital venture funding. This is the highest number of early stage investment VC deals since 2009. Not included in this number are angel and accelerator rounds.
Seed Funding Deal Size
The total amount of seed VC funding deployed in 2014 was a record $1.33 billion, up 49% compared to 2013, according to CB Insights. Seed VC deal sizes also continued to rise with the average seed deal size in Q4 of 2014 hitting a four year high of $1.9 million, while the median deal size in Q4 of 2014 reached $1.7 million in 2014.
CB Insights also reports that the number of active seed investors jumped to a new high in 2014 primarily due to an increase in the number of participating VC funds, as well as mega funds, including Google Ventures, Andreesen Horowitz and NEA.