the two most important things i've learned to understand odd VC behavior:
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Replying to @sama
1) VC firms only get their annual management fee on dollars they invest. if they have a $1 billion dollar fund, they get $25 million a year
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Replying to @sama
2) when VC firms go to raise a subsequent fund in 3 years, the "marks"--ie the valuations from the last round of their portfolio companies--
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Replying to @sama
are what they mostly talk to LPs about, and the biggest determiner in how well they're doing.
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Replying to @sama
so when your VC tells you they think it's a really good idea for you to raise a huge round at a high valuation,
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Replying to @sama
remember that their incentives may be different than yours.
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