Wagner: Capping round dilution at 10% attracts passive spray-and-pray investors
Peter Wagner · Peter Wagner: 27 Years of Investing Lessons of Picking Founders, Price Discipline & Reserve | E1123 · 20VC with Harry Stebbings · Mar 6, 2024 · at 45:42
Peter Wagner, Founding Partner at Wing VC, comments on founders capping round dilution at 10%, arguing it attracts investors who do not provide company-building support.
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“There's been so many new entrants that have pounded into venture that, you know, maybe aren't, you know, devoting that kind of company building craftsmanship to their projects, and they're really, you know, they're pursuing a spring and pray strategy or a capital deployment strategy that, And, you know, they think the name of the game is access and having, you know, a hundred portfolio companies is no big deal because they're not really spending any time with any of them. And so that, that's the type of investor that you'll get in it with that type of a model.”
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