This is part of a series that I’ve [been working on called Understanding Venture Capital.
In one of the posts I spoke about how the size and vintage of funds might affect you when you’re raising money. This led Roy Rodenstein (whose company Going.com was sold to AOL) and others to discuss, what happens when VC’s need to invest across multiple funds. Specifically Roy commented
“your company may go long enough that its vintage fund gets cramped and you may get painted into a corner for followons. Even more complicated, VCs often invest from multiple funds or sub-funds into a single deal. So as an entrepreneur it’s hard to navigate those waters over time. As usual the rule is, if you’re doing well, they’ll find the money for your next round.”
Everything that Roy mentions is true. And VC’s don’t like to invest across multiple funds. I thought I’d do a quick post on why VC’s don’t like to cross funds so entrepreneurs can better understand the situation and how to talk with their investors about it.
To read the full, original article click on this link: Can VC’s Invest Across Two Funds?
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