Likely a16z exercised their pro-rata as a16z is also listed in their Series B on Crunchbase along with the seed. There are any number of reasons a lead investo

Likely a16z exercised their pro-rata as a16z is also listed in their Series B on Crunchbase along with the seed. There are any number of reasons a lead investor in your seed doesn't lead your Series B, and there is no way to know a16z did not want to lead in the first place. A different fund may give a larger check/different terms/ a partner you want on board and you may accept that instead etc. There are many companies with outsized valuations that do not justify the revenue or any other metric, it is neither new to this wave (or even the dotcom wave) nor is it all that uncommon. On the surface it doesn't look like there is anything out of ordinary Kagan has done yet. It is high risk industry after all, if investors put strong filtering criteria then they risk loosing on deals which were actually legitimate or became legit with funding, it is risk VCs are quite aware of and willing to take. A Buyer should be beware of what he is getting into, accreditation is a thin shield,With Increasing SPAC listings and inflated markets even public listing won't protect them from early stage startup shenanigans these days companies like Nikola (anyone can invest ) do exist.