How pro rata made Garry Tan's first fund a 55x: Coinbase alone delivered 53x
ctjlewis · x · 2026-10-13
ThePeelPod breaks down why VCs fight over pro rata: Garry Tan's first fund returned 55x overall, but DPI on the first 98 companies was about 1x. Instacart added 1x but they couldn't exercise pro rata; Coinbase, where he kept taking pro rata through multiple rounds, delivered the final 53x. Lesson: returns concentrate in few winners, and follow-on rights on those winners decide the fund.
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