Venture Capital - Investment Group

If you are looking for venture capital, depending on the size of the round and the risk appetite of the investor, you can end up with a group of investors as a single VC.

In the course of your talks with various VC firms, ask if she draws as part of an investor group in the preamble. The conversation that follows you a wealth of information. You will probably say, if they always, sometimes or never invest, together with other groups. If they do, ask them which they otherwiseinvest in general with. If they have enough to interest you in a presentation, they may be willing to make an introduction for a different company.

So, let's say you have a "No" from the VC to speak to you, but you get the feeling that it is a soft-No. If you find another company that is willing to keep your round of financing, you can return to businesses that normally co-invest with others, even if you've already turned down. By the way, once an investment blessed by anotherCompany, the first company to reconsider its position.

The VC could have known in advance that his company is interested in the part of a group of investors. Find out about the term sheet that the company intends to invest in only part of the round means either that the VC is a beginner or that there are some last-minute concerns about the investment that causes the partners to peddle back in the last minute.

A rookie VC may or may not be a bad thing, but if one or more of theSkiddish partner on the deal, it could anger the term-sheet negotiations. Try to determine what makes the partners to take a lower risk position, so you can calm down.

In general, with several well-known companies as part of the investor group is a positive. Firstly, you get twice the resources for the same investment project, including twice the industry and the future investment contacts. In addition, if you can not be a second round, the investor must be able to continueinvest, but if you have two companies, your chances of receiving additional investment to double.

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