There has been a lot of talk lately about a Series A funding cliff and how it’s becoming harder for early stage startups to raise money.
But Greycroft Managing Director Alan Patricof said at our IGNITION conference today that he wouldn’t call it cliff.
“I would say that we’ve had a plethora of startups in this country,” Patricof said. “A lot of these people should probably get jobs instead of starting the next company that duplicates something else.”
He also says that there are simply too many startups at the moment, and not enough investors to support all of them.
In 2013, Patricof says, it will be about the survival of the fittest.
“[Startups will] get together or they’ll fold,” Patricof said. “I would say that today, I don’t expect a cliff. I just think it’s going to be a gradual sifting out.”
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