spray and delay

Definition

A strategy where investors make many small bets, then heavily support only the winners in subsequent rounds. The venture capital version of throwing spaghetti at the wall, then only cooking the pieces that stuck.

Example Usage

Their spray and delay approach meant they invested $50K in us at seed but reserved $5M for a Series A if we showed traction.

Origin

Evolution of 'spray and pray' terminology in the 2010s, emphasizing staged deployment

Fun Fact

This strategy requires massive reserves ('dry powder') to support winners, which is why mega-funds like Sequoia can do it but smaller funds cannot.

Source: Venture capital investment strategy terminology

Related Terms

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innovative

The adjective slapped on every product, service, and startup pitch deck to signal 'we're doing something allegedly new.' Something innovative is supposed to be groundbreaking and forward-thinking, though these days it often means 'we added AI to it.' If your company isn't innovative, you're basically admitting you're stuck in 2005 with a flip phone.

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board observer

Someone who attends board meetings but lacks voting rights, typically a junior investor or potential future investor. They're flies on the wall with NDAs and calendars full of meetings they can't influence.

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double trigger acceleration

Vesting acceleration that requires two events—typically an acquisition plus termination—before unvested shares become immediately vested. Single trigger's more reasonable younger sibling.

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Down Round

A funding round where a company raises money at a lower valuation than the previous round, which is the startup equivalent of your house being appraised for less than you paid for it, except everyone on Twitter knows about it. Morale is measured in tears per employee.

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fundraising

The noble art of convincing individuals, corporations, and foundations to part with their money for your cause, institution, or startup dream. In education, it's what keeps universities building new buildings with donors' names on them. In nonprofits and startups, it's a full-time job disguised as networking events and carefully crafted pitch decks.

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GP

General Partner, the VC fund managers who make investment decisions and carry legal liability for the fund's operations. They're the ones whose names are on the door and whose reputations are on the line.

🚀 Startup / VC

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