Movements that drive VC

There is a thing you probably don’t know about: venture investors who strictly join rounds.

Not “lead them”. Lead basically means they write the first check and sign up for the risk that they also write the second check.

In angel/seed land, this doesn’t really apply. Some guys fund, you hopefully have enough to get somewhere plus padding, then you raise for REAL.

Real rounds have a lead.

They also have followers.

And being a follower is a thing. A whole class of firms work this way.

What would you do of this was your mandate?

You would choose firms and trends to follow. Then you would talk to everyone in a trend or VC portfolio, pick your favorite and try to invest there.

This is how price wars happen. Limited supply of real-VC backed startups that meet conditions XYZ.

Did a top VC invest? Instant follow-on demand.

Is a category hot? Same.

So if you are a wildcard nobody understands this will work against you.

In a sense you WANT to be imitated or be in a category behind a leader. Shoppers in the market for your category will find you.

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