

Thoughts After Y Combinator Demo Day - adamsmith
http://blog.adamsmith.cc/2010/08/thoughts-after-y-combinator-demo-day.html

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riffer
_Interestingly, VC's still try to cherry pick_

I wonder why they do that. Naively, it seems like they are in the best
position for a carpet-bombing/index-type strategy since they can follow-on
beyond Series A with as many as work out.

~~~
adamsmith
I don't know for sure, but one theory is that if they carpet bomb at the seed
stage only some of those companies will be series A fundable, which means many
will be cut off. The negative signaling to other investors when a startup
isn't supported at the series A would be significant, so VCs know if they
carpet bomb eventually they will get a bad rep.

Ancesotally, more super angel funds are saying they will participate in later
rounds, and since some of them are doing lots of broad seed investing they are
the canary in the coal mine on how this will turn out.

