One of the wisest words anyone ever said to me about the venture business is this, "No-one raises a second seed fund".
Why? Because seeds funds are really, really hard to do, and there are really only two possible outcomes: Either it doesn’t pan out (the most likely scenario), or it works out. In either case, the fund’s founders don’t usually end with a second fund, because in the former case their investors won’t let them raise one, and in the latter case because they raise a larger fund and get out of the seed game.
I got to thinking about the preceding tonight in noticing that celebrated "new-style" VC fund Founders Fund has followed up its $50m first fund with a $220-million second fund. So much for seed? One wonders.