BACK
Tags:inside round,outside round,round size,new investor,large round,series b,investor,territory of company,median round size,inside series b
Posted: 2020-08-02 21:13:05
Inside Rounds Have Become a Sign of Strength at the Series B

Originally published 2020-08-02
However, Series B data suggest insiders are leading aggressive rounds into compelling businesses. Witness the red line in this Series B Mean chart. Inside rounds have skyrocketed. Last year, inside rounds were 28% smaller than outside rounds. In 2020, they are 40% larger, a $33M swing in round size.
As I wrote in the previous post, this is happening because investors are adjusting to a virtual environment. Diligence completed almost entirely over video is new. If you trust a team, if you understand a company well, if you enjoy information asymmetry from a board seat, and if you’re less comfortable with remote diligence, pre-empting the Series B is very rational. Especially with so many early-stage funds raising opportunity funds and LPs seeking direct co-investments.
Tags:inside round,outside round,round size,new investor,large round,series b,investor,territory of company,median round size,inside series b
Related News
Related Posts
Moutain inspired apparel from Alps & Meters
Saturday January 09, 2021
Alps & Meters is a premium, mountain inspired apparel brand with stores in Boston, Deer Valley UT, and Aspen CO. Of course, the brand also…
How can nocode & lowcode change development?
Friday January 08, 2021
Nocode and low-code development is on the rise. We recently got started on a new project using Bubble.io, after checking out an…
Social is trending private
Thursday January 07, 2021
The events that unfolded yesterday at the Capitol building were the result of years of turmoil, provocation, and a change in culture…