Most successful funds place the majority of their dollars in follow-on rounds fo... | Hacker News

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		spullara on Oct 11, 2013 \| parent \| context \| favorite \| on: Weary of ‘Fruit Fly’ Consumer Startups, Andreessen... Most successful funds place the majority of their dollars in follow-on rounds for their earlier investments.

pmarca on Oct 11, 2013 [–]

Correct -- this is a key consideration for actually running one of these funds that is not always obvious on the outside. A $5M A round investment carries an implied commitment to invest $10-15M more in later rounds.

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