It wasn’t long ago that the first thing a startup would do after raising angel money and venture capital was shout it out to the world. But today a lot of startups today have stopped rushing to announce their funding, especially seed rounds. What’s changed?
According to Hunter Walk, a venture capitalist with seed stage fund Homebrew, these startups aren’t even in stealth mode—in fact, he notes some in Homebrew’s portfolio, for example, are earning revenue in excess of $1 million. So what’s the holdup?
“They just don’t feel the need to draw attention to themselves or alert possible competitors,” he writes. But it’s a lot deeper than that: hiring has changed, social proofing is dead, and the instant impact of blogs has diminished, among other reasons.
Check out all of Walk’s theories on why announcing seed rounds isn’t as useful as it used to be on his blog.