Does a startup's Series A round typically have room for only one institutional investor, or can multiple institutions co-invest as at seed?

Paul Graham · published Nov 2005 · hedged

Deals split between two VC firms can be a net win for founders despite costing more equity.

You get multiple VCs invested in your success and can ask each for advice about the other, playing them off each other.

Scope: more likely when firms are close in the pecking order

source How to Fund a Startup

Tomasz Tunguz · published Apr 21, 2023 · hedged

A founder raising a $50M Series A should probably take it from two different VCs rather than one

Scope: Said in the context of his fund being able to co-lead but not lead such a round

18:40 20VC: Who Wins in AI; Startup vs Incumbent, Infrastructure vs Application Layer, Bundled vs Unbundled Providers | From 150 LP Meetings to Closing $230M for Fund I; The Fundraising Process, What Worked, What Didn't and Lessons Learned with Tomasz Tunguz

Nico Wittenborn · published May 22, 2023

Co-leading Series As remains possible today and is actually desirable to many founders

Some firms won't collaborate and that's fine, but he has consciously kept his fund small enough to collaborate and other small funds are willing to do the same; he just has to be early enough to shape how the round comes together

Scope: as things stand today; could change with the macro

26:34 20VC: Why Your Fund Model Should Not Rely on $10BN+ Outcomes, Why the Large Funds Got Too Large, The Rise of Solo GP's; The Pros and Cons & Is Consumer Subscription Even a Good Sector to Invest in with Nico Wittenborn @ Adjacent

Ophelia Brown · published Mar 17, 2023

At Series A there isn't room for more than one institutional investor, unlike at seed

27:30 Series a rounds support only one institutional lead investor unlike seed which allows many