Simkoff: VCs resist specialization because they hate extinguishing option value
Max Simkoff · 20VC Special: The Real Estate Fintech OGs on Why This Is Not The End For The Bay Area and What Can Be Done To Solve It, The Pros and Cons of Working with Corporate Investors and How Leading Their Teams Has Fundamentally Changed in a COVID World · Feb 18, 2021 · at 6:51
Max Simkoff, founder of States Title, discusses why traditional venture capital firms were hesitant to adopt narrow, sector-specific investment mandates.
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“The one thing VCs hate is extinguishing option value. So, like, when you're in a meeting with them, you're like, what's your typical investment size? Well, we do Series B and C. You're like, oh, we're looking for And they're like, oh, we do seed investments too, right? We actually will do some seed. We'll do some series E and F, like we might even do growth investments.”
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