Precursor VenturesA classic pre-seed and seed stage venture capital firm

Are venture firms drowning startups with cash?

15 Jun 2025 · 1 min

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0:30

A short discussion (YouTube video) by Precursor Ventures about how large venture capital injections can negatively affect startups. Speakers note founders generally don't intend to waste capital, but large infusions make disciplined allocation difficult, can change company culture, hiring, and project selection, and that the largest venture firms—flush with capital—are increasingly driven to find outlier winners.

Chapters

I always worry that I've never met a founder who's like, my intention is to waste 30 million of this $60 million. But I think injecting large amounts of money into companies that have had modest amounts of money, it's really hard. It's really hard to stay disciplined. It's really hard to put that money to good use. It's really hard to not have that infusion of cash. Change your culture, change who you hire, Change the projects you take on. But I think the biggest venture firms have more money than ever, are more incentivized to find outliers.