This requires VC's to spend partner time managing many more portfolio companies which dramatically changes their business model. It also means that they have to get better at judging "younger companies" than they would normally invest in, otherwise why not offer a "real A round" and be done with it?
It doesn't mean that they cannot change their model but I would like to read about a few more deals like this before I would take this as a harbinger of a new VC model.
The Right Side Capital folks announced several months ago that they would pursue a model like this (see http://www.rightsidecapital.com/ ) but they have yet to announce their first investment.
Sequoia has made tens of deals as have other firms such as Accel, CRV and more. They don't publicize these deals because they don't think it is in the best interest of the companies or themselves but they happen as Dave McClure and Roloef Botha alluded to on stage at TC Disrupt.
It doesn't mean that they cannot change their model but I would like to read about a few more deals like this before I would take this as a harbinger of a new VC model.
The Right Side Capital folks announced several months ago that they would pursue a model like this (see http://www.rightsidecapital.com/ ) but they have yet to announce their first investment.