[jaf12duke]

You have the dynamic mostly correct, but the motivations reside more at the partner level than the VC firm level. Individual partner IRRs are determined by the mark up they can report for the specific deals on which they have attribution.

When a VC pushes for a faster burn which then necessitates a new VC firm to fund the next round (perhaps prematurely relative to the founder's perspective), it's so that that individual VC can mark up their personal IRR.

Which may be relevant to their firm and the firm's fundraising plans to LPs. But could also be even more relevant if that partner is thinking about changing firms or starting his/her fund own. Individual IRR, based on deals with attribution, is the resume of a VC.

The effect of this is, junior partners push for this type of behavior more than senior partners that are already set with an impressive personal IRR.

[akharris]

Agree that much of this is partner dependent, but I've seen the dynamic play out happen with senior partners who have great track records and with younger partners out to prove themselves. In each case, I think the motivations differ slightly, but the same theme is at work.