Isn't it risky to selectively back particular YC companies? There's always a negative signal when your lead investor doesn't participate in future rounds - if they start doing that more regularly with this new fund, then it might become a negative signal for a YC company NOT to have Continuity/YC as a follow-on investor (which sucks b/c the firms are so early stage).

Anyone know how VC firms that invest in all early-growth-late firms deal with this dilemma (realizing there are only a few cases)?