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Harry Stebbings highlights that Series A investing has become significantly more difficult as the gap between Seed and Series A has diminished.
He observes that many startups are now reaching $1 million in annual recurring revenue quickly, making it harder for investors to distinguish genuinely exceptional early traction before valuations rise sharply.
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Stebbings previously noted the SaaS downturn as Wix was valued at $2.1BN despite matching ARR. He has also argued that venture capital investors will need to adopt more flexible approaches to succeed in future cycles, as outlined in recent commentary on adapting to new norms.