With VC drying, seed funding grows more selective

Where seed funding is going.(Photo: CrunchBase, for USA TODAY) SAN FRANCISCO — Seed investors are traditionally the first to make bets on promising start-ups and emerging technologies, giving an early indication of where the tech industry is headed. Such was the case in the early 2000s, when they poured money into social media, and the last few years, with autonomous vehicles. The spaces to watch now are augmented and virtual reality, machine learning and yes, cars, according to a new report from market researcher Crunchbase, one of a few recent studies on very early-stage investing. But there appear to be fewer sure bets in what increasingly has been a downward arc in venture funding. Nearly 2,000 investors sank $15 billion into 1,796 U.S. companies in the third quarter, according to report from researchers PitchBook and…


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