As someone who is starting a seed fund with a few friends, I want to address one of the footnotes: "The best investors rarely care who else is investing, but m

As someone who is starting a seed fund with a few friends, I want to address one of the footnotes: "The best investors rarely care who else is investing, but mediocre investors almost all do. So you can use this question as a test of investor quality." I think the part about mediocre investors is true, but I'm not sure if I agree with the part about the best investors. There is actual value in knowing who else is investing. First, knowing the caliber of other investors is a signal. It's not the only signal, and it's not the best signal, but it is a signal. Second, my partners and I have a network of trusted coinvestors. If we hear that one of them is investing in a company, we can share due diligence, which is great for founders because it avoids duplicated meetings, and great for us because it saves us some time/helps us focus on questions that haven't already been asked and answered. We have never made a decision to invest in something "because X is investing", but we've certainly used our relationships with various X's to inform our due diligence process.