Why Invest More After a Startup's Valuation Goes Up?

Alex Davis keeps the list of companies Disruptive wants to own. Sometimes it is 20 names, sometimes 15, and he holds the list. Names come on and off. The job is to forecast which of them are the investments that matter, then follow them, including a company that is still too early and one that is about to break through. Missing a round at one price is not a reason to refuse a later round. The firm is the opposite of an investor who feels the chance was missed.

A higher valuation can be the moment for a larger check. The business has become something they can underwrite, or there is more they can do to take the company to market. Pitch decks are not how the good investments arrived. The weak results were the times they invested because a deck came in. The record is strong when they go and find the company. When a company comes and finds them, that is adverse selection.