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do investors who commit and invest funds at early stage gain more return at the exit?

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May 29, 2024
Those who invested on day-1 commits for a longer period. Investors put money on day-365 should not get the same return in terms of amount. The fund return percentage might be same but the cash allocation/accumulation for return should take into account the time value of money.  Any one with an experience with returns delivered to investor?
Imagine a scenario as follows: Investor-A invests on day-1 and then investor-B invests on day-100. VC makes an investment in a Startup on day - 101 and then exits on day-365. In this scenario, investor -A allocates her capital for 365 days whereas investor-B allocates capital only for 264 days. In this case, investor-A (early-investors) has less motivation to commit at early stage. How can we make a fair return calculation for both investors.  or what is the best way to explain this to early investors? 
May 29, 2024 2:02pm
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May 29, 2024

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