My recent post gave rise to a host of questions around the issue of recycling. What does it mean? How do you do it? And what are the implications for venture investors?…recycling is a complicated issue that warrants a more thorough discussion.
Source: Recycling: The challenge and the opportunity for a Seed stage VC – Roger Ehrenberg, IA Ventures
Venture capital can look like a mysterious black box from the outside. The simple question, “How much capital does a VC have to invest?” can have confusing answers. Roger Ehrenberg of IA Ventures posted a great article on Tumblr. His explanation of the math behind recycling of investment capital provides useful insight.