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VC & Fund Mechanics

Follow-on

A fund investing again in a company it already backs, usually to defend ownership in a later round.

Why it matters

Reserves for follow-ons are a big part of fund strategy — backing winners harder is where a lot of returns are made.

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Get the real-world version of "Follow-on" drawn from hundreds of conversations with founders and investors.

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Episodes on Venture Capital

M&A Is a Muscle: Alex Feldman on Buying & Selling in Chaos

First Cheque with Cheryl Mack & Maxine Minter · 17 June 2026

M&A Is a Muscle: Alex Feldman on Buying & Selling in Chaos
Taryn Pieterse of Rampersand — How a VC backs early-stage founders

Investment Thesis with Kali Norman · 12 June 2026

Taryn Pieterse of Rampersand — How a VC backs early-stage founders
Episode Five: Dan Coughlan's Investment Thesis

Investment Thesis with Kali Norman · 29 May 2026

Episode Five: Dan Coughlan's Investment Thesis
All Venture Capital episodes →
Related terms

Pro rata rights

An investor's right to invest again in future rounds to maintain their ownership percentage.

Dry powder

Committed capital a fund has raised but not yet invested.

Ownership target

The percentage of a company a fund aims to own, driving how big a cheque it needs to write.

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