To The "A" Round Go The Spoils

I disagree with a key point in this article that postulates that Series A investors have taken on as much risk as Series B investors.

The mere fact of knowing that other investors - especially if they are large and famous ones - have already invested in a business by itself reduced your risk. Having 3 years worth of information about a company vs 2 years worth of information reduces your risk. There is more to risk than the binary "unproven business model" vs "proven business model" that the author seem to make it out to be.

The author's own words: "Having said all that, I believe that it requires a lot of courage to be the first to invest in an unproven business."

Why? Because there is more risk.