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← Glossary
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.

Hear it from people who've done it

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

Eric Ries on What Investors Get Wrong About Governance

First Cheque with Cheryl Mack & Maxine Minter · 3 August 2026

Eric Ries on What Investors Get Wrong About Governance
Alex Khor's Investment Thesis

Investment Thesis with Kali Norman · 24 July 2026

Alex Khor's Investment Thesis
What Makes a Founder Worth Backing at Pre-Seed? With Ilana Elbaz | GTM at Deel

First Cheque with Cheryl Mack & Maxine Minter · 20 July 2026

What Makes a Founder Worth Backing at Pre-Seed? With Ilana Elbaz | GTM at Deel
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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