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Michael Romano, Lightspeed Venture Partners’ former chief business officer, has joined Megalith as a founding partner, according to The Information on Oct. 6, 2026. Megalith supplies capital that seed funds can use for follow-on investments—including pro rata allocations in later startup rounds—while allowing the seed fund to retain most of the carry on that investment.
Who is Michael Romano joining?
Romano spent more than 13 years at Lightspeed, where he focused mostly on fundraising. The Information reported that he raised more than $35 billion during his tenure there. He has now joined Megalith as a founding partner.
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In a note to Lightspeed limited partners, Romano wrote: “I found billions in unused investment rights held by seed funds in the rounds the world’s most premier venture capital firms are leading.”
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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallHow Megalith’s pro rata financing works
Pro rata rights let an investor participate in a company’s later funding rounds to maintain its ownership percentage and limit dilution. A seed fund may hold those rights but lack the capital to use them when a successful portfolio company raises a much larger round.
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- A seed fund identifies a follow-on investment. It can offer Megalith a pro rata allocation or another follow-on opportunity in a portfolio company.
- Megalith supplies the capital. If the startup agrees to the arrangement, Megalith buys the new shares. The company’s approval matters; a seed fund cannot assume it can transfer or assign its allocation without consent.
- The seed fund retains most of the carry. The seed fund keeps most of the carried interest associated with the investment, while Megalith earns management fees and, under the terms described in the report, a share of marginal profits after a specified threshold.
The arrangement gives a seed fund a way to support a promising company in a later round without providing all the follow-on capital itself. It is not evidence that every seed fund can transfer its rights or that every startup will accept such an arrangement.
Reported fund size, checks and economics
The figures below are terms and descriptions reported by The Information, not independently confirmed current offering terms. The article attributes the fee and carry comparisons to Megalith’s partners.
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| Item | Terms or figure reported by The Information |
|---|---|
| Second fund | $280 million raised |
| Assets under management | More than $500 million |
| Typical check | $5 million to $10 million; up to $25 million including limited-partner co-investments |
| Megalith blended management fee | 1.25% |
| Management-fee comparison | 2.5%, described by the partners as typical for larger firms |
| Seed fund’s carry | 20% of profits |
| Megalith’s profit share | 7.5% of marginal profits after realized profits double |
| Blended carry comparison | About 23%, compared with 30% at many large early-stage funds |
The reported carry structure separates the seed fund’s share from Megalith’s later participation: according to the partners as quoted in the report, the seed fund receives 20% carry, and Megalith receives 7.5% of marginal profits only after realized profits double. The report describes the resulting blended carry as about 23%. These figures should not be treated as universal market terms or as a substitute for a fund’s governing documents.
How Megalith differs from other follow-on approaches
The Information described GPx and Alpha Partners as other approaches to follow-on investing. The distinctions below reflect that report, not a comprehensive independent comparison.
| Firm or approach | Who it works with | Role described in the report |
|---|---|---|
| Megalith | Seed funds | Provides capital for a seed fund’s pro rata allocation or another follow-on investment; targets rounds led by about 20 firms the report characterized as having strong track records |
| GPx | Emerging managers | Backs managers’ funds and selected portfolio investments, investing alongside a manager so that the manager can lead; those managers may invest at stages ranging from early to late |
| Alpha Partners | Early-stage funds | Co-invests alongside funds to help them exercise pro rata rights |
The models address related financing needs, but they are not interchangeable: Megalith’s reported focus is supplying capital to seed funds for later investments, while GPx backs emerging managers and Alpha Partners co-invests alongside early-stage funds.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Megalith’s origins and reported activity
The Information reported that John Komkov, Elizabeth Lowell and Preston Moore founded Megalith in 2021. Komkov described the firm’s first fund, a $110 million vehicle, as a “proof of concept.” The report also said Megalith had worked with about 40 seed funds and had about $1 billion in potential deals during 2026.
Those deal, fund and activity figures, as well as Romano’s role and fundraising record, are reported by The Information. The available account does not independently establish the figures through public fund filings or governing documents.
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