Tomasz Tunguz @ttunguz has written another excellent piece about where VC funds are allocated.

As can be seen in the graphs, there has been a drift towards larger rounds recently. This fits with his "Why Startups Face Increasing Competition In Raising Series As And Bs" post of a few weeks back.

At the time I remarked that it seemed odd that the ratio of seed to round B was declining whilst the pot of cash was constant. However, it seems the reason is that there is simply more money going into fewer companies.

It could be that there is a concentration of capital in VC mega-funds. These funds have a requirement to put their money to work and to move the needle they must allocate large amounts. Thus the cash ends up in fewer "mega-rounds" not spread through more, smaller players.

This is at odds with the seed rounds where crowdfunding is enabling a much more liquid market. It'll be interesting to see whether the large VCs themselves are in for a round of disruption.