By staging investment, venture capitalists strive to optimize their financial returns. Entrepreneurs on the other hand might prefer to get as much investment as early as possible so as to grow their companies as quickly as possible without running short of money and having to spend time negotiating for subsequent rounds of venture capital or, if the company falters, being abandoned by their venture capitalist. An investment agreement is a compromise between a VC’s objectives and an entrepreneur’s. In theory, there should be an optimum rate of investment in terms of how much is invested in each round and the time between rounds. But to our knowledge, the relationship has never been studied empirically.