VCs will scrutinize capital needs instead of forcing minimum check sizes
Sanjay Nath · Blume Ventures: Sanjay Nath on Post Covid-19 Scenario for Startups & Building Future of Work · Apr 19, 2020 · at 30:31
Sanjay Nath, Managing Partner at Blume Ventures, discusses how the market downturn will reshape VC check sizing and discipline.
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“I think now VCs will ask the question very, hey, listen, what do you really need this money for, right? Okay, here's five million because we can't, earlier it was like, okay, you know, we can't deploy less than three million because that's our minimum check size. So let's take it, you know, park the money and you can put it in an MD. I think now very carefully, what do you really need the capital for? Is the business land ready to absorb it?”
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