Does ownership matter in VC?

Well many folks that have an ownership-agnostic model >at scale< have a different but equally key goal:

To put 10% of their fund into their top winners, regardless of ownership per se

Then, if the winner does 10x, the winner returns the fund

It’s a rough model ... like trying to own 15%-20% for classic larger Series A / Series B fund

But it does underpin a lot of successes from larger funds that hunt decacorns

Put 10% of fund total in at $10m, then $100m, then $1B ...

If it’s a decacorn, you return the fund

These funds tend to act differently

They are often fairly chill in first round they invest, but then aggressively try to pre-empt later rounds & make sure full allocations are protected

Vs folks that buy larger stake upfront tend to be a more chill later (just a touch)

The rise of decacorns has made the “ownership agnostic but try to put 10% of your fund into your winners” model work for far more investors

Any $2B+ outcome where you have pro-rata rights makes it work

A decacorn makes you a genius