With the proliferation of micro seed VC’s in the past 5 years (<$40 m fund size), where do you think things shake out? Are there enough good deals at the seed stage for most of these funds to succeed?

There aren’t enough great deals for the 300–500 new micro funds, for sure.

And the rapid expansion in valuations makes it even harder again. Deals at 2x-3x the price of a few years back makes it even harder for small funds to make money.

And yet … these are the Best of Times in SaaS.

So the best of the best will make a lot of money:

| Bessemer Venture Partners

And since absolute valuations and public and private unicorns are at an all time high, it’s good hunting.

But it’s difficult to believe there are 10x-20x more truly great start-ups being founded a year than a few years back. If there are, we need all these funds. But if there aren’t … there will be a culling. Eventually.

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