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You would expect that investors would help your startup more if they had more equity from a lower valuation and were rationally trying to maximize the expected value of their holdings.

However, in seed stage investing in startups, investors do not end up looking at their equity stakes when they decide to help or not help a startup.

The primary determinants of whether an investor helps you are: 1) Whether they are the type that generally want to help the companies they invest in 2) Their relationship with the founders 3) How successful they perceive the startup will be and whether they feel they can contribute to that success



I have different amounts of equity in different startups. All else being equal, I prefer to help the ones in which I have more equity. I like to help companies that I invest in, but my time is limited. I've had to make that call.




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