---
title: "I’ve Changed My Mind. Early Stage Venture Funds of $100 Million or Less Should Hold Almost No Reserves for Follow-On. | Hunter Walk"
source: "https://hunterwalk.com/2026/07/23/ive-changed-my-mind-early-stage-venture-funds-of-100-million-or-less-should-hold-almost-no-reserves-for-follow-on/"
domain: "hunterwalk.com"
type: "article"
summarized_at: "2026-07-23"
canonical: "https://tl-dr.cc/s/i-ve-changed-my-mind-early-stage-venture-funds-of-100-m-_nF7"
---

# I’ve Changed My Mind. Early Stage Venture Funds of $100 Million or Less Should Hold Almost No Reserves for Follow-On. | Hunter Walk

**Source:** [hunterwalk.com](https://hunterwalk.com/2026/07/23/ive-changed-my-mind-early-stage-venture-funds-of-100-million-or-less-should-hold-almost-no-reserves-for-follow-on/)  
**Summarized:** 2026-07-23  

- Early-stage venture funds under $100M should minimize follow-on reserves and instead treat pro rata opportunities as new investments competing for capital allocation.
- The venture landscape has fundamentally changed—crowded cap tables, auction-like dynamics, and inexperienced multistage firms make historical "best practices" about reserves outdated and irrelevant.
- Funds should maximize initial deployment to catch more outliers, only following on when conviction genuinely exceeds market pricing or when defending exceptional companies.
- Fund recycling to 100%+ invested capital solves the reserves question and demonstrates LP discipline without reserving capital upfront.

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