Tod, great post, but you didn’t detail the problem at a level that’s actionable.

It’s really the Patzer No-Pro Rata problem. A bunch of large funds are desperately trying to deal with the Internet’s low-capitalization reality by making investments too small for the size of their funds. To provide their LPs with acceptable returns, they are entirely dependent on repeatedly exercising their pro-rata rights on subsequent rounds. When you are a $300M fund, It’s almost impossible for a $5M investment to provide scaled returns on its own.

Most importantly from where I sit, the exercise of pro rata rights is the moment of greatest divergence between founder interests and VC interests. That’s the worst of the structural problems that is hurting the big funds.