> If you're a $250M venture fund, why not throw $250K cheques around and see what sticks
Because even $250M venture funds don't like to waste their cash if they don't have to. There should be some vetting process otherwise they're in trouble with the LPs. And $250K is too low for a large fund because of the overhead of doing a deal. You're just as likely to pick up a few million in capital for a more solid plan that you'd be picking up $250K for a weaker plan.
$250K is middle ground, that's more a big sum for an angel than a small sum for a large fund.
Smaller funds might try to do a $250K deal for a disproportionate percentage, that's not really a win for the company.
Because even $250M venture funds don't like to waste their cash if they don't have to. There should be some vetting process otherwise they're in trouble with the LPs. And $250K is too low for a large fund because of the overhead of doing a deal. You're just as likely to pick up a few million in capital for a more solid plan that you'd be picking up $250K for a weaker plan.
$250K is middle ground, that's more a big sum for an angel than a small sum for a large fund.
Smaller funds might try to do a $250K deal for a disproportionate percentage, that's not really a win for the company.