In this hyper-funded era of the startup ecosystem, the dynamics of building startups have changed. In most instances, a founder has more leverage than an investor. The positive side of this is that now every fund has to fight for a deal.
Those were the days when you get a cheque from a marquee investor because he cold reaches you. I have heard multiple instances where founders went ahead with power angels instead of blue-chip VC because those angels helped.
To be part of a CAP table, an investing team has to earn and justify their contribution apart from money. The relationship, help, mentoring, and connection should be authentic. Most seasoned founders are also carrying out their due diligence on VC funds. I get a call almost every other day.
A fund running on great culture will thrive irrespective of its fund size. They will not have to worry about race and competition. A fund manager needs to educate their team more on being empathetic with founders and fair treatment.
Capitalism brings competition and opens a level playing field for all stakeholders. There has been a shift in power dynamics. It has become a more level playing field where your contribution gets you the deal flow.