Supersized seed rounds: The earliest stage of the startup market is getting out of control

• An investor gold rush is driving larger seed rounds, with more surpassing $5 million.
• Multi-stage VC firms are inflating seed round sizes by offering bigger checks.
• More investors want to write the first check with the hope of that turning into a huge return.

There's been an investor gold rush to find the hottest new startup, causing a new dynamic: larger seed rounds.

In some cases, the seed round is getting out of control. While most seed rounds still hover between $1 million and $5 million, a larger chunk of rounds have crept past that $5 million mark in the past three years or so. Recent data suggests this phenomenon might be becoming a new normal.