This post completely ignores VC-startup fit, fund size, investment strategy and other factors.
There are many different kinds of (institutional) VCs. A firm with a $100MM active fund invest very differently than A16Z with a > $1 B available for investment. The ideal ownership stake within the portfolio company, comfort level with higher valuations, investment allocated across multiple rounds for a portfolio company all are a function of fund-size and investment strategy.
As the active fund size increases (e.g. $500MM or $1B), the fund is biased towards making big investments and hugs wins are needed for LP returns. When fundraising for your startup, its critical to understand if these dynamics are going to be a cause of conflict between your investors and you. Just because a VC firm invested in Facebook, doesn't mean their dynamics make sense for your startup.
There are many different kinds of (institutional) VCs. A firm with a $100MM active fund invest very differently than A16Z with a > $1 B available for investment. The ideal ownership stake within the portfolio company, comfort level with higher valuations, investment allocated across multiple rounds for a portfolio company all are a function of fund-size and investment strategy.
As the active fund size increases (e.g. $500MM or $1B), the fund is biased towards making big investments and hugs wins are needed for LP returns. When fundraising for your startup, its critical to understand if these dynamics are going to be a cause of conflict between your investors and you. Just because a VC firm invested in Facebook, doesn't mean their dynamics make sense for your startup.