This is part of my [Understanding Venture Capital.
] ongoing series onI recently wrote a blog post on understanding how the size and age of a venture capital fund might affect you when you’re raising money. Because it is a “series” I plan to get into some of the deeper complexities of funds such as “cross over funds” and “why VC’s hate to price their own deals” at a later stage. The last post was a high-level primer. I know many super experienced entrepreneurs who don’t understand the basics of how fund size and age can affect them so I thought it was worth establishing a baseline.
Chris Dixon provided some commentary on Twitter that he believes my last post missed “the most important point about fund size.” He’s specifically referring to his point of view that entrepreneurs shouldn’t take seed money from “big VC’s” (he defines them as > $100 million). It actually wasn’t the point of my post – my point was just to get people thinking about the issues of size and age in the first place.
To read the full, original article click on this link: Understanding the Risks of VC Signaling
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