O'Driscoll: Megafunds with forgiving LPs should pursue late-stage investing over seed
Rory O'Driscoll · a16z's $20BN Fund & Founders Fund's $4.6BN & Why Josh Kushner Has Mastered the Game · 20VC with Harry Stebbings · Apr 17, 2025 · at 41:11
Rory O'Driscoll (General Partner at Scale Venture Partners) discusses fund mechanics and incentive structures with Jason Lemkin on why megafunds choose late-stage rounds.
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“If you have access to capital that's large and forgiving, which is what these mega funds have, then you should play the big balls game. Cause you're exactly right. You don't do it. You have to do less work. If it works great, you make out the same as Jason who did the seed for suckers and Rory who did the A. And if it doesn't work out, you're going to get a one X, but you get forgiven and you start again. If you have access to that kind of money, That's the game you should play.”
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