Thread by @kevinakwok

I was skeptical on signal risk being big issue. Its impact on potential new vcs is still overweighted imo

But recent convos with founder friends has flipped my view

The real issue is how it changes openness on fundraising strategy between founders & *current* investor

Because now they are player in the next round too. So founders become a lot more sensitive about what to share and being able to talk it through with them

Not only bc have to still be marketing to them (which I personally think people underweight degree you always must do that)

but also because now conversations with them affect the dynamics of upcoming round, like double slit experiment

I don't view that as insurmountable. And all of private markets is the essence of conflict of interest (which has huge positives too)

but I think we focus on wrong side when we worry about new investors perception of company--instead of what it's doing to founder-board member dynamics

of course, many founders already don't use board in that advisory way (which is whole different conversation) but this side

does feel like issue to be addressed