Jason M. Lemkin says big venture funds are now passing on follow-on rounds for startups that have doubled or tripled revenue. He remembers when multibillion-dollar funds automatically increased their bets across A, B, and C rounds. A recent strong deal got nothing from one of them.
The biggest surprise I saw. This is a, this is a tactical point. I was very surprised that huge funds were not doing, we're not supporting their companies in up rounds, good rounds that were very, very good companies, but not necessarily decacorns. I was surprised. I grew up in a world where big funds, if you, if you, if you doubled since the last round, tripled your revenue, right? And there was an outside lead or whatever lead. Every big fund did their pro rata or they came close, right? I've got 3 billion under management. I did 10 million in the A, I'll do 2 million in the B, or 3 million in the C, or 4. Like, I never saw a big fund not do this. And then I watched a deal, a very good deal, where a multibillion dollar fund said they're going to do zero.
