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When you seek venture capital, depending on the size of the round and the risk appetite of the investor, you may end up with an investment group rather than a VC.
During your conversations with various VC firms, ask if they would consider being part of an investor cohort. The conversation after this will give you many types of information. They will probably tell you whether they always, sometimes or never co-invest with other groups. If they do, ask them who they usually invest with. If they are interested enough in your presentation, they may be willing to make an introduction to another firm.
Also, let’s say you get a ‘no’ from the VC you’re talking to, but you feel it’s not soft. If you find another company that is willing to lead your round of financing, you can go back to firms that typically co-invest with others, even if they already turned you down. Are. On occasion, once an investment has been blessed by another firm, the first firm may reconsider its position.
The VC should have told you ahead of time that their firm is interested in being part of an investor pool. Finding on the term sheet that the firm only intended to invest in part of the round could indicate that the VC is a fraud or there was some last-minute quandary about the investment that caused the partners to back-pedal at the last minute. Had to do
A rookie VC may or may not be a bad thing, but if one or more of the partners is concerned about the deal, trouble could be brewing through term-sheet negotiations. Try to find out what causes the partners to take a less risky position, so that you can reassure them.
In general, having several well-known firms as part of your investor group is a positive. For one, you get twice the resources for the same investment, including twice the industry and future investment contacts. Additionally, if you need a second round, investors may not be able to continue investing, but if you have two firms, your chances of getting additional investment double.
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