Rabois: Venture funds should make ad hoc follow-on decisions, not reserve
Keith Rabois · Keith Rabois on Rejoining Khosla Ventures | E1102 · 20VC with Harry Stebbings · Jan 12, 2024 · at 21:16
Keith Rabois, partner at Khosla Ventures and former partner at Founders Fund, contrasts systematic reserve allocation models with ad hoc follow-on investing models.
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“You're probably better off not reserving, and then making ad hoc decisions based upon the quality of that particular opportunity, which includes who's the investor, what's the traction of the company, what do we believe about the founder, what have we learned about the founder's abilities and traits, and then what's the valuation?”
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