Early funding is a very small part of the overall pool of capital available.  If every seed round is $2.5 million, 10,000 seed deals (~100X YC&#x27;s size) is $25 billion in capital spent.<p>For context:
- It&#x27;s less than ten percent of Google&#x27;s market cap ($490 billion) [0]
- The average Series D or later round is 40x higher ($100 million) [1]
- It&#x27;s less than a tenth of a percent of the US bond market  ($40 trillion.)  [2]<p>Net - seed funding is just not a lot of money compared to the market at large.  If founders and VCs have money, they can spend it.  It gets very different later on.<p>[0]  <a href="http:&#x2F;&#x2F;www.google.com&#x2F;finance?cid=304466804484872" rel="nofollow">http:&#x2F;&#x2F;www.google.com&#x2F;finance?cid=304466804484872</a>
[1]  <a href="https:&#x2F;&#x2F;www.preqin.com&#x2F;docs&#x2F;press&#x2F;Venture-Capital-Q1-15.pdf" rel="nofollow">https:&#x2F;&#x2F;www.preqin.com&#x2F;docs&#x2F;press&#x2F;Venture-Capital-Q1-15.pdf</a>
[2]  <a href="http:&#x2F;&#x2F;money.cnn.com&#x2F;2015&#x2F;10&#x2F;14&#x2F;technology&#x2F;cb-insights-venture-capital&#x2F;" rel="nofollow">http:&#x2F;&#x2F;money.cnn.com&#x2F;2015&#x2F;10&#x2F;14&#x2F;technology&#x2F;cb-insights-ventu...</a>
[2] <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Bond_market" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Bond_market</a>