Nicole DeTommaso: VC check size does not always indicate stronger belief in a startup

Nicole DeTommaso: VC check size does not always indicate stronger belief in a startup
VC check size may not reflect conviction

Nicole DeTommaso said that a venture capital (VC) firm writing a $2 million check does not necessarily signal more belief in a startup than a $250,000 check.

She added that many founders misunderstand this aspect of fundraising, noting that each VC fund operates within its own set of constraints, such as fund size and ownership targets.

DeTommaso has previously cautioned founders about pitfalls in fundraising, warning that stacking SAFE agreements can lead to giving away substantial ownership stakes in a startup during the fundraising process. She has also observed that investors and VCs frequently excel at promoting their portfolios, which may make them appear stronger than they are in reality to potential founders and LPs. These perspectives contribute to her broader commentary on startup and investor dynamics.

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