Anthony P. Lee
Over the last two years, much has been made of the “Series A Crunch”, a steep drop-off in the number of seed-funded companies that are able to close an institutional Series A financing. For the companies that make it that far, there is another financing pitfall – something I call the “Series B Trap”. This one is just as fatal and even more heartbreaking because it is highly likely yet entirely avoidable. I’ve been a part of it as entrepreneur and investor, and my experience was confirmed reading an old Fred Wilson post on why venture-backed startups fail.