Why not keep reserves for follow-ons?
Peter Teneriello

We get this question a lot. We think about this two ways: (1) we have little experience with follow on decision making and (2) the data shows that if you’re in the best deals, follow on capital doesn’t matter nearly as much as people think.

We’re actively looking at this aspect of our strategy because the math changes on a deal-by-deal basis. If we were going to add follow on investments to the current strategy, we would need to raise significantly more capital which also adds more complexities.

Unlike most venture capital funds, we’re less interested in optimizing every ounce of upside and more interested in protecting the downside risk — the idea of being an efficient allocator of capital over numerous decades is interesting (and we think valuable).