Doesn't matter if it's a $150m fund buying 15% stakes or a $10m fund buying 1% stakes.
Smaller isn't easier.
- 50% of fund is for initial checks, 50% for follow-on checks.
- 30 investments.
- 50% dilution over time.
- In 90% of good funds, the top company returns the entire fund by itself. See comment below from a highly regarded fund-of-funds:
This is why VCs are always chasing home runs. And why having a great fund return is very hard.