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

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…...