Ask AI
Log In Sign Up

Venture Deals

107

Ask about anything related to doing venture deals, including valuation, due diligence, negotiation, terms, and exiting. The data incorporates questions from active venture investors answered by experts and peers.

All Unanswered
0
Venture Deals

Can I just invest as an individual and move it to the fund at a later stage?

Asked by:
Community Member
2
0
May 03, 2023

Can I just invest as an individual and move it to the fund at a later stage?

Top answer:

You invest as an individual and then move it into the fund later, correct. You will need to secure approval from the company to change the owner, so notify them ahead of time.

 - 
Community Member
 0
0
Venture Deals

Can I Include an A-Round On-Sector Warehouse Investment Opportunity in My Seed Stage Thesis Fund?

Asked by:
Community Member
2
0
May 03, 2023

Can I deal warehouse a great on-sector investment opportunity that is an A round into my seed stage thesis fund?

Top answer:

You can do whatever you want. BUT from a business perspective, you really want your first 3 deals to be on thesis AND they're deals that will get marked up ideally before your second close.

 -  Mike Suprovici
0
0
Venture Deals

Can a Small Angel Investment Be Used to Warehouse a Deal and Later Match Fund Investment Thesis?

Asked by:
Community Member
1
0
May 03, 2023

Question around investment sizes when warehousing a deal: The angel checks I write are much smaller than what I would be writing out of the fund. I want to invest in a great founder which closes by EOY. We have discussed me coming in on a smaller angel check to warehouse the deal and then assuming I can first close basically follow-on with capital that would bring the investment size to match fund investment thesis (FWIW if I were to fail closing the founder is ok with just having me as an angel). Is that a viable path? Can a small investment be used as a warehoused deal?

Top answer:

You can warehouse a deal of any size that is related to your Thesis. If they are too small, then it may appear strange to have in your fund. Unless your fund has a follow on strategy, then don’t plan to do a follow on, as this would be o...

 - 
Community Member
 0 Show more
2
Venture Deals

What is the typical ownership percentage for a seed stage investment?

Asked by:
Community Member
2
0
May 03, 2023

What is the typical ownership percentage for a seed stage investment?

Top answer:

Though this varies widely, each investment round would sell between 10% and 25% of the company. Best practice is to model the capital journey, tools like this one from Foresight https://foresight.is/cap-table/ are recommended

 -  Neal Strickberger
1