We've noted recently that the barriers to entry in the hedge fund industry seemed to have grown over the past two years. Gone are the days when you can get up and running like all those Silicon Valley upstarts of yore.

This in part reflected reduced activity by hedge fund seeders. But IDD now reports that seeders are active again. Since July, large hedge fund seeders have been making more deals to place seed money with emerging funds. What's more, the median deal size has grown from $25 million three years ago to $75 million this year. Playing to their advantage, there's also been a spike in the quality of talent willing to accept their funds.

Overall, seed money and the sheer number of seed deals is not nearly as plentiful as they were in the boom years from 2003 to 2007. Still, the niche is far from dead, and if you really want to start up a fund, there are options available. 

For more:
- here's the IDD article

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