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>>Possibly. But Uber raised 1B at the same time. So that suggests that the VC world still believes in the Uber model No, it simply suggests that VCs behave as
by enraged_camel 11y ago
>>Possibly. But Uber raised 1B at the same time. So that suggests that the VC world still believes in the Uber model
No, it simply suggests that VCs behave as a herd, and one well-known VC firm investing in a company suddenly makes the others want to invest in it too due to FOMO (fear of missing out).
- viscanti 11y agoThat answers why a second VC might join a round. It doesn't explain how rounds work in general though. I'm not convinced we can hand-wave over the first VC joining. They still have criteria they're using, and they seem willing to take on a lot of long-shots. The fact that none of them picked up Lyft's latest round still says something.