There has been a bunch of talk lately about the decrease in seed-stage funding, particularly in terms of number of deals. Here was Fred Wilson's take:
"When I talk to my friends who do a lot of angel investing, I hear that they are being more selective, licking some wounds, and waiting for liquidity on their better investments. When I talk to my friends who started seed funds in the past decade, I hear them thinking about moving up market into larger funds and Series A rounds. You can see that in the data. Less deals and bigger deals."
Fred's point about liquidity cannot be overstated, but should be expanded upon.