Could you explain the process a bit more. The two questions I have are:
- If $50m goes into 20 companies in a micro vc, that’s an average of $2.5m per company. That’s a very large investment per company for seed stage companies.
- How does a VC go about acquiring 20% in a company? That really is a large stake at the time of exit.
I assume the answers to the two questions are related and that the $2.5m per company is invested over multiple rounds, but it would be nice to hear exactly how the process may play out for a meaningful exit companies that you invest in.