Please Succeed or Fail Fast: Why Large VCs & Seed Rounds Could Lead to Portfolio Conflict Down the Road

Despite some speculation, I’m not @StartupLJackson. However, after reading this article about his NVCA talk, I’m realizing I might be Naval Ravikant because there’s a lot in there that I’ve been thinking about as well. Our early stage fund Homebrew debuted just two years ago in early 2013 but already I’ve witnessed a dramatic change in how BigVC thinks of seed.

  • But not all startups are up and to the right. Those which grow more slowly suddenly become very capital efficient — burns get reduced, second seeds get raised, etc. They reach profitability or become zombies.
  • BigVC who led round gets frustrated. Small ongoing concern isn’t worth their time but even worse, what happens when they — or one of their other partners — wants to invest in the Series A, B of a company in a similar vertical. Uh oh, potential conflict. Earlier seed founder isn’t happy — you’re investing in one of our competitors!

You’ll find me @homebrew , Seed Stage Venture Fund w @satyap . Previously made products at YouTube, Google & SecondLife. Married to @cbarlerin .

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