Party Round? When Startups Should And Shouldn’t Take It

2 min read

Party rounds, or mass syndication, is when a startup raises from multiple investors, none of which individually has a large enough stake, instead of having the traditional notion of a lead and follow investors. It has become more common in recent years as there are more investors competing for good deals and savvy entrepreneurs trying to maximize their rounds. Crowdfunding say through Kickstarter is arguably the ultimate expression of a party round. Party rounds are most common in the seed, which is typically the first institutional round. It is thus when VCs have the least data / metrics to judge…...

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Amit Garg I have been in Silicon Valley for 20 years -- at Samsung NEXT Ventures, running my own startup (as of May 2019 a series D that has raised $120M and valued at $450M), at Norwest Ventures, and doing product and analytics at Google. My academic training is BS in computer science and MS in biomedical informatics, both from Stanford, and MBA from Harvard. I speak natively 3 languages, live carbon-neutral, am a 70.3 Ironman finisher, and have built a hospital in rural India serving 100,000 people.