I’ve Changed My Mind. Early Stage Venture Funds of $100 Million or Less Should Hold Almost No Reserves for Follow-On.

When we started Homebrew in 2012/2013 the conventional wisdom was that early stage funds hold 20-50% of their total capital for follow-on pro rata. Mostly to double down on their winners [offense!] and sometimes to help bridge promising companies to their next financing or maintain ownership in pay-to-plays [defense!]. This best practice was based on [ ]