AmplifyLA: Dramatic Drop In Seed Funding In LA In Q1

Venice, California-based startup accelerator Amplify.LA reports that seed funding in Q1 of 2017 dropped precipitously, falling 42.2 percent from Q4 of 2016, and 43.8 percent, Year-over-Year. According to AmplifyLA, the number of seed deals dropped to 27 in the quarter, down from 32 from Q4, and--making a grim quarter even worse--the average seed size declined to only $1.9M raised, from $2.8M in the prior quarter. AmplifyLA pointed out that the seed deals were in contrast to the bigger picture, where venture capital investments were up 15 percent nationally--but pointed out that those gains were driven by "mega-deals", rather than seed funding. AmplifyLA said it will be reporting quarterly on seed deals, a change from the annual reporting it did in 2016.