, 3 tweets, 1 min read
Sequoia was the only outside investor in WhatsApp over multiple rounds. It earned $3B on $60M invested. dealbook.nytimes.com/2014/02/20/in-…
It is true that outside marks help calibrate the price of an investment. But VC is all about the exceptions and blanket rules can lose you money.
Inside rounds happen when companies are doing either really well (so you want to preempt) or really poorly (as no one else will invest).

I don’t know the statistical distribution, but I know that large returns have been made on inside rounds. Common example is seed-to-A.
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