Fred Wilson just wrote an article, What Has Changed, in which he confirms the observation I made in a recent post (And then there were 100…) that Series A funding rounds are harder to obtain for consumer Internet companies.
VC funding of consumer web and mobile companies is down 42% in this first nine months of 2012 versus the first nine months of 2011. He gives a thoughtful explanation as to why that is:
- The Internet has matured and the incumbent dominant consumer Internet platforms make it hard for new entrants to emerge.
- The transition from the web to mobile is changing what it takes to succeed in the consumer web.
- Momentum and late stage investors are now focusing on the enterprise market.
