Major question for VCs today: does your fund size still make sense?
𝗧𝗵𝗿𝗲𝗲 𝗶𝗻𝘁𝗲𝗿-𝗿𝗲𝗹𝗮𝘁𝗲𝗱 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀
Do I lead rounds?
If I do, the median lead check is 25%-50% larger today than it was only 3 years back. Am I willing to invest into fewer companies (building a more concentrated portfolio) in order to maintain ownership?
Do I follow-on?
If I lead, I'm sort of expected to (side note as Peter - kinda think this is an expectation that should fade but I get it). Well, great, the follow-on check is ALSO much larger than it used to be and if my portco gets marked up by a major Tier 1 fund, forget it there goes millions.
Do I bridge companies?
A bridge here, another there, and pretty soon you're talking about real money that could have been spent on another net new bet. But I need to maintain good relationships with my founders in this business.
Tricky all the way down. But the incentives clearly point in one direction - try and raise a bigger fund next time.
Which LPs always love 😅
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
