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

Should startups opt for smaller funding rounds?

31 Jul 2025 · 0 min

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0:19

A Precursor Ventures video discussing whether startups should pursue smaller funding rounds. The speaker notes that while million-dollar checks are written, some businesses may benefit from smaller rounds because tighter capital constraints can force focus and better outcomes.

And when I tell people sometimes, hey, we write million dollar checks, they're like, to whom? I'm like, there are people or million dollar rounds. Or I'm like, look, there are people out there who want smaller rounds. They are not the norm and they are not the dominant force in the market. And I meet a lot of companies. I'm like, this is a business that I think would do better with less capital. It would force more constraints. They would.