VCs are focusing on companies that have already moved past the early stages of development.

Venture capitalists are spending their money on more established companies rather thanyoung startups, according to data from the first quarter of this year.

According to the latest MoneyTree report–which was put together by the National Venture Capital Association and consulting company PricewaterhouseCoopers–there were only nine seed-stage investments in the Bay Area during the first quarter of this year–a 67 percent drop from the same period a year ago. Later-stage investments were up 17 percent from the year-earlier period, the San Jose Mercury News reported.

With so many companies launching due to lower barriers to entry, VCs are looking to invest in those that already have a solid customer base and a good market share, the Mercury News reported. “There is a lot of money being thrown into companies to scale. It’s turning into a war, and you had better be well funded and well armed,” Jeff Grabow, a venture capital expert at San Jose-based financial services Ernst & Youngtold the outlet.

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