[remote_sf_]

The way I interpreted the article was that more money is being poured into the seed stage funding, and late-stage funding is drying up. This has also been my experience working for a VC backed startup and seeing our competitors recently go out of business because they did not build sustainable models and couldn't get late stage funding.

Investing more at the seed stage also makes sense because it allows the investor to diversify with a smaller amount of capital, and potentially exit earlier (if the company can get late stage funding and the early investors can get out through it or a secondary market).

This behavior is in line with your observations of a concentration of investment in winners (and in line with GSV Capital's public statements from the 2Q earnings call earlier this week). It is also consistent with the article's statement that now may be a good time to quit your job, as seed stage is frothy.