When deciding if to raise a venture round, its critical to ensure your venture investor shares the vision for the company: both the product roadmap and the financial goals of the company.Most founders never consider the impact on fund size on VC motivations. As long as there are enough reserves to invest as the company grows, a founder might think, thats fine with me.But this is naive. Fund sizes dictate a VCs strategy. To achieve their target returns, a $50M fund and a $500M fund must pursue very different investment and management styles.
read on: Why Fund Size Matters by Tomasz Tunguz.