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.
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.
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.