The 3 Different Strategies of Venture Funds

As I wrote about in a post on aligning founder and VC incentives, it’s important for entrepreneurs to understand their own ambitions and the ambitions of investors. The most important part of that is understanding the financial motivations and the dynamics of the industry VCs face. Typically, VCs adopt primarily one of three strategies with a fund [1]: Small fund, small ownership positions, many investments in markets that will consistently generate sub-$100M acquisitions.

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