We provide support to our companies throughout their lifetimes.
The conventional wisdom in tech VC is to double down on perceived “winners” regardless of price. We disagree with both parts of that sentence: in conventional VC there’s business risk even in Series A,B, and C rounds, so it’s often opaque who are the “winners”. All investors face the risk of investing at a valuation which is too high.
That said, we evaluate follow-ons as though it were the first time we were investing in the business. The question we try to answer is the following: knowing what we now know about the team and business, would we invest in the company at this valuation?
That said, we cannot invest more than 6% of our fund in any one company, which creates a built-in limit on follow-on investments, both because many of our companies do not raise follow-ons because they don’t need to, and because we think we’ll generate higher returns if we stay focused on early-stage investing. We can invest through Special Purpose Vehicles in follow-ons, where appropriate.
We have a long working history with a range of VCs who make later-round investments, lenders, and other financiers. We are glad to introduce you to the right capital sources in our network.