Jason M. Lemkin discusses venture-capital portfolio support decisions: he argues top-quartile companies should receive follow-on checks from large funds, observes that automatic pro rata investments appeared to pause (possibly due to fund-raising fears or over-allocation to bridge rounds), and questions how winners and losers will become apparent during reserve deployment.
There are a lot of reasons to support your portfolio companies, right? And, and there are plenty of reasons to not support your dogs, your losers. Right? I mean that you have to be careful there. But anyone in the top quartile should get another check from a big fund. And so the fact that that wasn't happening, I think it was, I think it was fear they couldn't raise another fund. I think it maybe it's fear that they'd written too many bridge, bridge round checks. I don't know. But that was my shocker was these automatic pro ratas appear to have gone on pause in the time frame where reserves will be deployed. Do you think your winners and your losers will be apparent?
