Why Late-Stage Investing is Becoming More Like Seed-Stage

People often think about venture capital as one homogeneous model. The reality, however, is that the way in which seed investors make money has been dramatically different from how late-stage VCs and growth-equity funds do.

Seed investors fundamentally must chase big hits. Because early-stage companies raise relatively small amounts of capital, to get big dollar returns, investors need enormous multiples on their successes to offset high failure rates and generate a good return.