Q3 2010 venture capital statistics showed that Seed and Series A internet deals are taking share from later stage deals. Interestingly, the quarter also showed increased bifurcation between seed and series A deals as evidenced by median deal size. For skeptics who argue that seed and Series A are just a matter of semantics, the data over the last five quarters shows that the two deal types are not just distinct but that the gap in terms of funding per round type is increasing as well.
As the graph illustrates, median deal size for seed venture rounds into internet companies was $800,000 in Q3 which has been fairly consistent over the last five quarters. Series A internet deals came in at a median deal size of $3.4 million in the past quarter and have been trending up over the last five quarters.
What do you think is driving up the median Series A internet deal size?