VC prisoner's dilemma: mega-funds and $1B seed rounds spark investor debate
dauber · x · 2026-09-29
Investor lpolovets argues large VCs face two prisoner's dilemmas: raise mega-funds or lose ultra-hot rounds to rivals that upsized, and invest in $1B+ seed companies or look like you're missing the startups everyone talks about.
Investor dauber pushes back: compute costs are indeed inflating fund sizes, but mega-funds aren't necessary — deals are getting syndicated, and $1B seed rounds are a bad bet. "Seed stage risk at growth stage prices is a bad investment. You can decide not to invest and be just fine."
More from Venture
- Build distribution, not products: a YouTube channel cofounder is pulling $100k/month in brand deals — damianplayer · 2026-09-29
- Cognition nears $1B revenue; investor says burn rate would complete the picture — GavinSBaker · 2026-09-29
- Health AI raised ~$2.25B across 13 companies this week as Iambic files for IPO — HealthcareAIGuy · 2026-09-29
- Skip Building Products, Build Distribution: YouTube Channel Hits $100k/mo in Brand Deals — eptwts · 2026-09-29
- Keyfleet teases leaderless agent fleets with shared treasury on Ethereum — seanwbren · 2026-09-29
- OpenAI's $200 Pro gets half the API-dollar value as code reveals a $500 Pro Max tier — Cyb3rdude · 2026-09-29