Follow-on investing is a fascinating topic. There are all these myths floating around out there. On the investor-side, I hear all kinds of things involving how much of your fund to allocate towards follow-on funding. Or whether to invest in every round. And on the founder-side, I hear myths about how you should only approach investors who do follow-on or how you should *not* approach investors who do follow-in in case they decide not to invest. And if any investor decides not to invest, is that negative signaling? Does the investor really not believe?
I thought I would make a video addressing any and all of these myths. As always, your position on these questions really depends on the exact nature of your situation.
Here’s how to think about follow-on investments in startups:
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