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Why VC’s Don’t “Crossover” Invest

Agile VC

A little more inside baseball from the VC biz… why VC’s rarely make “crossover” investments, with capital from multiple funds the VC firm manages invested in a single startup (see note 1). I was talking with an entrepreneur recently about this phenomenon. Why is this?

LP 178
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Interview with Mike Brown Jr. of AOL Ventures

The Startup Lawyer

We’re a small fund with $30M of committed capital, so we focus on Seed and Series A opportunities. We also tend to focus on repeat entrepreneurs but are not opposed to funding first time founders who have significant domain expertise. I get it, but that’s not a logical investment thesis for us to deploy capital against.