There’s a clash happening in the early-stage market.
In one world, late-stage investors are reacting to tech stonk corrections by clamoring toward the early-stage investment world, forcing seed investors to go even earlier to defend ownership and potential returns. This trend was underscored by firms like Andreessen Horowitz launching a pre-seed program months after launching a $400 million seed fund. Even more, Techstars, an accelerator literally launched to help startups get off the ground, debuted a fund to back companies that are too early for its traditional programming.
While all that is going on, early-stage investors are enduring a valuation correction and portfolio markdowns. Some are admitting that they’re telling portfolio companies to refocus on cash conservation, profitability and discipline, not just growth.
Let’s pretend these two vastly different worlds are in the same universe: Early-stage investors are getting more disciplined and cash rich, but at the same time, the earliest investors are going earlier. Investors are pushing fo …
