Sitting it out: Why some investors are staying out of mega-series A rounds

As series A rounds continue to balloon, some VCs are opting to stay away from super-sized rounds, arguing the large boluses of cash up front can erode financial discipline and constrain exit options, hurting returns.

Large A rounds are becoming in vogue: this year’s tally of series A rounds breaking the $100 million barrier is already at four, roughly on track to meet last year’s total, when 10 companies raised over $2 billion on aggregate (see Figure: “$100M and up”). ...