How venture capital funds make money: why one big win pays for all the startups that fail
Follow-on investment: why a venture capital fund keeps money for later
A venture capital fund does not spend all its money on new startups. It keeps a large part aside for later. Not every startup of the fund will get a share of it.
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You agreed to grow to 40 cities fast. That costs money your startup does not have. A new investor puts in $12 million. This new round has a name: the Series A.
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Then Miva adds $3 million from the fund, money she has kept aside for years, for a moment like this one.
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