Iron Key Investment thesis - Why Seed Why Now

Why seed-stage has outperformed every major asset class over the last 25 years

Seed-stage investing has quietly become one of the most consistent and high-performing asset classes of the modern era. While public markets swing with volatility and late-stage venture deals become increasingly crowded and capital-constrained, the early-stage landscape remains a fertile ground for long-term upside. Over the past 25 years, data shows that seed-stage investments have delivered outsized returns, outperforming growth equity, real estate, public equities, and even most institutional portfolios.

In Iron Key Capital’s latest whitepaper, Why Seed, Why Now?, we explore why this moment in particular marks a rare and strategic entry point. As large venture funds shift upstream and institutional capital hesitates, a capital vacuum is forming at the earliest stages of innovation. For those positioned to act, it presents a powerful opportunity to back high-potential founders and capture asymmetric returns.

The whitepaper dives deep into the macroeconomic conditions driving this shift—such as tightening liquidity, declining valuations, and a renewed focus on capital efficiency—and explains why early-stage startups, particularly in sectors like Web3 and AI, are uniquely suited to thrive in this environment. It also unpacks how technological convergence, from decentralized infrastructure to open-source AI tooling, is lowering the cost of innovation while increasing the surface area for breakthrough products to emerge.

This isn’t a cyclical trend—it’s a structural realignment of where innovation starts and how it gets funded. And for those with the insight and agility to invest early, the next decade is already being shaped today.

To read the full article, please click here