How Much Capital Should You Reserve for Later Rounds?

A significant portion of the fund is going to be reserved for investing in future rounds of the company. Some funds will, it gives more than half, its two thirds, or even 75 % of the capital is reserved for later rounds. This is important because it provides protection that your existing early investors won't get boxed out in later rounds by new investors coming in and saying, hey, i want to take this round.