Menlo Ventures Defends Barbell Strategy: Seed/A Plus AI Outliers With Options to Double Down
mmurph · x · 2026-10-06
Menlo Ventures' Matt Murphy explains the firm's barbell strategy—combining seed/A rounds with AI outlier bets—in response to Sriram Krishnan's disagreement with a growth-stage investor. He argues that given seed-to-exit dilution, returns only work if the firm earns the chance to double down on winners, calling it a two-way option earned through daily trust-building with founders.
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