VC Adventure

MAY 21, 2014

A few months ago AngelList announced Syndicates – enabling investors on AngelList to create fund-like groups of investors to invest together in AngelList companies (following a single lead investor). It’s a great idea and at Foundry we quickly decided it would be an interesting experiment to form our own syndicate.

Syndicate 48

Syndicate Syndication Technical Review Due Diligence 48

Gust

JULY 12, 2012

On May 2nd and 3rd, I led workshops for about thirty Estonian investors on syndication, due diligence, valuation and the post-investment relationship with entrepreneurs. That same afternoon, FiBAN organized a two-hour workshop on Due Diligence in the offices of PricewaterhouseCoopers.

Community 121

Community Estonia Ireland Finland 121

View from Seed

JUNE 11, 2019

At this point, founders find themselves in a luxurious situation of being able to build the best possible syndicate. So really take your time to do your due diligence on the investor (both the individual and the firm). It’s not necessary to nail down every element of your syndicate simultaneously. So too few is not great.

Syndicate 202

Syndicate Syndication Seed Stage Lead Investor 202

Feld Thoughts

AUGUST 25, 2015

Take a look at the founding syndicates of each: Masstor Sytems (5/1979). Quantum Corporation (6/1980). What is striking about these syndicates is that nobody had any meaningful capital, which forced syndication and cooperation. Some were Silicon Valley early stage companies, such as Apple, Quantum, and Masstor Systems.

Venture Capital 70

Venture Capital SBIC Technical Review Silicon Valley 70

David Teten

DECEMBER 3, 2019

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. 6) Due diligence. I personally use Salesforce.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Feld Thoughts

JULY 15, 2014

We recently funded Blinkfire Analytics using our FG Angels Syndicate. So, we were psyched he was willing to do an FG Angels Syndicate with us. When it was oversubscribed they kept their syndicate commitment, but offered a much bigger investment outside the syndicate. I asked him if I could post them – he said yes.

Syndicate 149

Syndicate Syndication Cap Table Due Diligence 149

David Teten

SEPTEMBER 6, 2018

See my summary on how lead investors think about building out their syndicate. . 6) Due diligence. : Best Practices of Private Equity and Venture Capital Funds in Originating Investment Opportunities. 5) Manage deal flow. See How to Judge Investment Pitches. 7) Negotiate transaction. 8) Monitor and report investments.

Technical Review 60

Technical Review Private Equity Management Cap Table 60

David Teten

SEPTEMBER 6, 2018

See my summary on how lead investors think about building out their syndicate. . 6) Due diligence. : Best Practices of Private Equity and Venture Capital Funds in Originating Investment Opportunities. 5) Manage deal flow. See How to Judge Investment Pitches. 7) Negotiate transaction. 8) Monitor and report investments.

Technical Review 60

Technical Review Private Equity Management Cap Table 60

View from Seed

MAY 29, 2019

Historically, seed rounds were syndicated among several different firms. Today, we are seeing less syndication of seed rounds and sharper elbows among many of the funds in the market. Instead of broadly syndicated rounds, we are seeing much more competition for fewer slots. Why Is Seed Investing Becoming More Sharp Elbowed?

Syndicate 267

Syndicate Syndication Cofounder Cap Table 267

David Teten

SEPTEMBER 23, 2017

For both origination and due diligence, a host of companies aspire to be the “Bloomberg of private companies”, including CB Insights , Crunchbase , DataFox , FuelUp , fundsUP , Mattermark , Qodeo , Quid , Tracxn , Unomy.com , and Zirra. 5) Due diligence. Talent Relationship Management tools (e.g., 6) Negotiate deal.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

David Teten

SEPTEMBER 6, 2015

Others follow independent financial lead investors and most require that independent investors be part of the syndicate. The best corporate investors strive to move fast even in the face of more complex approval and due diligence processes imposed by their parent companies. They invest alongside financial VCs.

Venture Capital 60

Venture Capital Balance Sheet Technical Review Portfolio 60

www.paulgraham.com

APRIL 28, 2010

Some angel investors join together in syndicates. By accepting the term sheet, the startup agrees to turnaway other VCs for some set amount of time while this firm does the"due diligence" required for the deal. VCs legal and financialdue diligence is pretty thorough, but the technical due diligenceis generally a joke. [

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

David Teten

JANUARY 19, 2021

Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate. Typically 1-3 months of due diligence. Most Flexible VCs lead rounds and often take 100% of the round to mitigate this risk. Material, as founder usually has ongoing monthly payment obligations. Time required to invest.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

David Teten

JANUARY 11, 2020

Many investors including me spend most of our day doing the same things people have always done in our job: in my case, due diligence, deal execution, etc. Kevin Lee, Executive Chairman of Didit, emphasizes the importance of having a content syndication strategy alongside a content creation strategy.

Social Media 60

Social Media Technical Review Media Private Equity 60

The Startup Magazine

JANUARY 17, 2024

The due diligence phase mirrors the challenges of facing Scylla and Charybdis where entrepreneurs must navigate through a path filled with potential obstacles and uncertainties. It symbolizes your dedication and acts as a guiding light through the challenging terrain of investor scrutiny.

Due Diligence 148

Due Diligence Angel Investor Syndicate Syndication 148

Genuine VC

JULY 26, 2010

Micro VCs are notorious for building large and friendly syndicates. While traditional VCs sometimes have a love/hate relationship with their syndicate partners (often depending on how well their mutual portfolio companies are performing), it seems as though in the Micro VC arena all of the players speak and act like best friends.

Syndicate 128

Syndicate Syndication Due Diligence Seed Stage 128

Genuine VC

OCTOBER 2, 2012

But it also includes legal due diligence, rounding out the round with additional syndicate investors (often angels in seed rounds), figuring out allocations, as well as sometimes even (but hopefully not) additional business diligence for the institutional venture investors.

Term Sheet 162

Term Sheet Founder Vesting Due Diligence Syndicate 162

David Teten

JULY 12, 2017

The challenge with most such independent investors is that they, quite reasonably, all have their own independent decision-making and due diligence process. Although EquityZen is primarily an online marketplace for secondary shares in private companies, they also offer syndicated primary investments. Market Insight.

Syndicate 60

Syndicate Syndication Institutional Investors LP 60

Rob Go

MARCH 5, 2012

One area of fundraising that is not that straightforward is how to put together a syndicate of investors for your seed round. Here are a couple things I typically suggest when putting your seed round syndicate together. Lead investors will usually do more extensive due diligence and have a more thorough process.

Syndicate 49

Syndicate Syndication Lead Investor Due Diligence 49

View from Seed

OCTOBER 22, 2015

This doesn’t mean they’ll come back after a first meeting with a term sheet or verbal commitment to invest, but instead, they’ll typically respond with either a pass or an indication that they want to dig in further with additional meetings and/or business due diligence. The ultimate reference is through a portfolio founder.

Term Sheet 120

Term Sheet Due Diligence Seed Stage Seed Capital 120

Rob Go

NOVEMBER 18, 2014

The reason is that most seed syndicates have room for 5-10 angels or more, but only room for 1-3 funds. As an angel, it’s possible to get to an investment a bit late, or follow the signal of a strong syndicate and still do pretty well. They also should be doing due diligence of some sort.

Syndicate 66

Syndicate Syndication Due Diligence Liquidity Event 66

VC Adventure

AUGUST 10, 2010

From the initial idea we worked together to validate the operating assumptions of the business – doing collaborative due diligence on the crowdsearch SEM marketplace that was the idea behind Trada. In this case neither Niel (nor I) had any interest in creating a traditional syndicate to fund the company.

Syndicate 73

Syndicate Syndication Due Diligence SEM 73

David Teten

JULY 10, 2017

. – If an employee wants to invest at least $25K in a private company, she can nominate it to the Syndicate VC (“SVC”). – SVC conducts its own due diligence and invests alongside the angel. This could be a firm-provided pool of capital, and/or an outside VC which has a close relationship with the firm.

Employee 60

Employee Balance Sheet Syndicate Syndication 60

Rob Go

JULY 17, 2014

Prospective LPs evaluating NextView tend to focus their due diligence on conversations with these folks as well as other trusted participants in the startup community that are likely to have a POV on us. On #2, we have been fortunate to collaborate with a wide group of exceptional entrepreneurs, coinvestors, and limited partners.

Seed Stage 69

Seed Stage Early Stage Due Diligence Liquidity Event 69

VC Adventure

MARCH 17, 2016

Most angel deals happen in syndicates (meaning multiple investors participate), yet many angels are extremely poor at working together with other potential investors. The results are burdensome on a company, result in the duplication and overlap of due diligence and force too much of the syndication work on the company itself.

Syndicate 48

Syndicate Syndication Angel Investor Colorado 48

Tim Keane

APRIL 12, 2006

What is your due diligence process? If the investors ideal size is smaller than your need, you ought to ask about syndication. If they don’t like to syndicate, or don’t have a track record of doing it, you will want to consider your options. What is your due diligence process? I’d ask for a copy upfront.

Entrepreneur 60

Entrepreneur Sweat Equity Valuation Common Stock 60

Rob Go

OCTOBER 21, 2013

What they’ve found is that it’s reasonably effective to hang-around-the-hoop as a deal is coming together, and pounce once a high-quality syndicate seems to be forming. You can do a lot of reference calls and market due diligence in 3-7 days. Many seed investors don’t lead or have limited experience leading.

Seed Stage 53

Seed Stage Due Diligence Early Stage Syndicate 53

Agile VC

MAY 26, 2011

They take months to do their due diligence, and then wonder if investing in a start is the right thing to do…you’re lucky to be surrounded by VC”s who get it, as opposed to Canadian VC’s who twiddle their thumbs more often than not, unless you’ve developed some new server load balancing platform or a microchip.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

David Teten

FEBRUARY 3, 2014

Detailed due diligence. That said, our experience so far is that these online markets are most useful to identify opportunities to join a syndicate, not to source and lead a new investment. Profiled initially. Target Selected. 10,000 [v]. Negotiated with. Acquired/ invested. Deals as % targeted companies. of submissions).

Private Equity 114

Private Equity Venture Capital Technical Review Equity 114

Rob Go

JANUARY 17, 2017

In the last three investments I’ve made, there has either been a lifecycle VC involved or one was interested but didn’t end up being part of the syndicate. This means some combination of: Pitching the entire partnership and allowing the VC to do real due diligence. At minimum, $500K, but more likely closer to $1M.

Due Diligence 28

Due Diligence Seed Stage Syndicate Syndication 28

Berkonomics

DECEMBER 17, 2020

Some can supply more when syndicating with other such groups. And even though angel groups syndicate their best deals within their respective associated networks, it is always best to apply to the angel groups nearest your physical location. Angel groups invest from $250,000 to $1,000,000 or more in qualified investments. Accelerators.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

David Teten

MARCH 14, 2018

The firm attracts deal flow by promising a decision (positive or negative) in under 2 weeks, with minimal paperwork and without repeating due diligence. Coinvestors need to figure out ways to prioritize themselves in a VC’s preference stack for syndicating opportunities.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Berkonomics

APRIL 3, 2014

And even though angel groups syndicate their best deals within their respective associated networks, it is always best to apply to the angel groups nearest your physical location. The advantage to getting the attention of a super angel is that most operate informally and make quick decisions with little due diligence.

Equity 92

Equity Finance Liquidity Event Angel Groups 92