Follow-On Investment
定义
A follow-on investment is additional capital an existing investor puts into a portfolio company in a later round, often using pro rata rights to maintain ownership.
它在融资中如何出现
Funds reserve significant capital for follow-ons; whether insiders follow on is read by new investors as a signal of conviction.
常见问题
Why does insider participation matter in a new round?
Existing investors know the company best; their absence from a new round raises questions, while strong participation validates the deal.
What are reserves?
Capital a fund sets aside for follow-on investments in its existing portfolio, often comparable in size to its initial-check budget.