[fragmede]

Why don't current traditional VC funding vehicles scale down? Like if you took hypothetical paperwork that says the VC invests $10mm, at a $50mm valuation for Series-A, and just swapped in the numbers $10k and $50k?

I'm assuming the overhead of vetting a deal is a mountain of toil for the VC firm, and there are going to be some fixed costs - eg filing fees for S or C-Corp paperwork, lawyer time. But outside of that, I'm not familiar enough with what a VC does to understand why current vehicles can't scale like , and why a different type of funding vehicle is necessary for $10k investments to become the norm instead of $1mm or $10mm?

Could a tech company automate the shit out of all the toil involved with VC deals and do VC-funding-as-a-service? Stripe Atlas already makes it trivial to spin up a company so further automation doesn't seem unrealistic.

[luckylion]

I Have no experience in the US, but at least for Germany, that won't work because the fees for lawyers, notaries etc will eat that investment completely. You can usually calculate 5-10k€ in external fees only, never mind the time and energy you spend on the talks. Doing a very small round just doesn't work.

> Could a tech company automate the shit out of all the toil involved with VC deals and do VC-funding-as-a-service?

At least for Germany: no. Things like notary fees are pretty fixed, and you can't do that stuff without them (well, you can, but than it'll basically be "here's money, please don't screw me as I have zero ability to enforce anything").

[mrnobody_67]

Also time... Series A investors make 1-2 deals per year. They sit on boards. Hard to do more than 10-12 board seats.

Find deals & founders worth investing in is super hard. Might as well back up the truck and put large amounts to work when you do...