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

The Emotional Dynamics of Follow Ons #venturecapital #founder #investing #ai

24 Mar 2025 · 0 min

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0:28

This YouTube discussion (Precursor Ventures, Mar 24, 2025) explores the emotional and practical dynamics that influence venture capital follow-on investments. Speakers observe that high-touch investor–founder relationships can create pressure to follow on even when additional information suggests it may not be optimal; this pressure is sometimes formalized when managers pre-allocate a portion of the fund for follow-ons. The conversation frames follow-ons as both an underwriting/allocation decision and an emotional/relational one.

I don't know as much about underwriting at Serious C. That's not what you get paid to do. Yeah. Even just the point you raised about founders, you could have an incredibly high touch relationship with a founder and know so much about the business. And maybe the information that you learn, it's maybe not the best thing to follow on. I know there's a lot of fund managers, they probably just feel like they've already crossed the line and they can't go back. And they've supported them so much so they have to follow on. I think that happens when you've already allocated a specific pool and percentage of your fund because you know you're going to use it.