Hi Casters. I wrote about some "inside VC" topics this morning. You may or may not find this interesting. But if you are in VC, particularly early in your career, you should give this a read.

Hi Casters. I wrote about some "inside VC" topics this morning. You may or may not find this interesting. But if you are in VC, particularly early in your career, you should give this a read. https://avc.xyz/reserves,-recycling,-and-returns

Thanks for writing this.

1) Do you think reserves are as necessary for smaller early-stage funds (<$30m)?

2) Since you set aside reserves for every company, how much does subsequent valuation matter, if at all (ie are there limits), for you to do a follow-on? (Assuming you’re not the follow-on lead)

Co-founder @curated | Angel investor @ todd.capital | YC alum | Farcaster fan | toddgoldberg.com

Thanks for the reply. One more: 

For small early stage funds, what do you think is an ideal % for reserves? (It seems there are many different views here).

1/ yes. I think small early stage funds should try to keep investing in their winners and 2/ we sit on the sidelines if we feel the valuation is well beyond what is appropriate for stage and risk.