Why Mega Funds Hurt Early Founders
“When you have a mega fund with tens of billions of dollars of assets under management, a two to five million seed round really just becomes an option bet for them.”
Transcript
where to go in this market. And it's not a great, not a great, great thing for founders or early stage businesses. The reason being is when you have a mega fund with, you know, tens of billion dollars of assets under management, that, you know, two to five million seed rounds really just
becomes an option bet for them. All of a sudden, you know, they're, they're putting in dollars, but it's meaningless to them. Whereas they really just want the optionality of investing a lot more over time. And they're incentive is to get money out the door, because now all
of a sudden they're playing a management fee game, rather than a rather than a carry game in terms of aligning incentives around building a big business. And for the most part, you know, ironically, it may