This was one of the clearest explanations I have heard recently for why many corporate investors prefer to follow rather than lead funding rounds. It was not about confidence in due diligence, or even cheque size. It was about roles, as one experienced CVC investor told me.
“The person who writes the biggest cheque is the one the founder or CEO calls when things are on fire. I want to be the fun uncle. You want to play around with some ideas? Let’s run experiments, launch rockets in the backyard together — that kind of vibe,” he said. READ MORE