Regan Bozman recently shared insights from the second annual State of Seed report, which analyzes over 1,000 companies that raised seed funding in 2022. The report evaluates these companies based on their ability to find product-market fit (PMF), secure follow-on funding, and launch tokens. The analysis reveals that approximately 1,200 companies were part of the 2022 seed vintage, with around 80% still operational, 18% having shut down, and only 1% achieving product-market fit. This data is significant as it provides a retrospective view of how seed-stage companies perform over time, typically taking 1-2 years to validate their business models and attract further investment. Bozman highlights a concerning trend regarding venture investments, noting that the latter stages of bull markets and the early phases of bear markets are often the worst times for such investments. The follow-on funding rates dropped from about 30% in 2021 to 12% in 2022, while token launches also saw a significant decline from 50% to 15% in the same period. He cautions against following market trends blindly, pointing out that a substantial amount of funding—$700 million—went into gaming seed rounds, which exhibited some of the highest failure rates. The report emphasizes the importance of being cautious and not merely chasing popular narratives, as the trends that seem hot today may cool off significantly in the future. Among the companies that raised seed funding in 2022, some are now recognized leaders in emerging sectors, such as Eigenlayer in shared security and Daylight Energy in decentralized energy solutions. Bozman stresses the importance of being early in these markets to capitalize on potential growth. The report also addresses platform risk, revealing that only 13% of teams based on Ethereum and Solana secured follow-on funding, compared to just 5% for Avalanche and none for NEAR. This highlights the varying levels of success across different blockchain ecosystems. In conclusion, Bozman expresses gratitude to contributors and acknowledges the ongoing evolution of the venture landscape, particularly with the emergence of new ecosystems like Sui Network and Berachain. The insights from this report serve as a valuable resource for understanding the dynamics of seed-stage investments and the broader venture capital environment.