Why Did a Seed Fund Back Erebor?

Jeff Morris Jr says his seed fund backed Erebor's $2 billion round, a deal that was not a classic pre-seed, because refusing it would have cut the fund off from a big part of the market. In five months Erebor became one of the fastest growing banks of all time.

The firm put a large percentage of one fund into the round after getting to know the chief executive. The team was pounding the table to do the deal. A hard no from an investment committee, on the grounds that a seed fund cannot do the deal, would have wiped out that part of the market. Putting 5 or 10% of the fund into Erebor makes more sense than using the fund only for very early stage investing.