David Teten

SEPTEMBER 23, 2017

Even for later-stage companies with predictable financials, the lack of liquidity, audited financials, and standardized metrics creates real challenges to scaling quantitative investing. Later stage investors are using private company marketplace services focused on more established companies, listed below under “Exit Investments”.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

View from Seed

APRIL 30, 2015

NVV: Let’s talk about the seed stage specifically. With venture debt as a source of low-cost capital to fuel growth or buy time during later stages, should a founder approach their fundraising from VCs any differently today ? We’d then put together a proposal that would spell out all the mechanics, including the pricing.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Gust

AUGUST 27, 2014

The two sites you mentioned are both secondary listing services, for later stage companies. Groups also often “syndicate” investments, working cooperatively to fund larger rounds that are bigger than one group can easily handle alone. There are hundreds of them, with at least one in every state.

Angel Investor 133

Angel Investor Accredited Investor Angel Groups Syndicate 133

Feld Thoughts

JUNE 20, 2014

USV has done a magnificent job of investing in later stage rounds of their existing portfolio companies as well as later stage rounds of companies that fit tightly within their investment thesis. We decided to drop the second half of that strategy as we didn’t want to spend time being late stage investors.

Early Stage 108

Early Stage Later Stage Syndication Syndicate 108

David Teten

JULY 11, 2019

Ranked in descending order of frequency of use, they are: 1) Syndicate the investment out to coinvestors, without charging any fee. I recently wrote about How VCs Structure a Syndicate and Recruit Coinvestors. 2) Raise a single, larger fund with flexibility to invest at later stages.

Syndicate 60

Syndicate Syndication Institutional Investors Dilution 60

David Teten

DECEMBER 3, 2019

Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. Later stage investors are using for sourcing private company marketplace services focused on more established companies, listed below under “Step 11: Exit”. They read reviews of the products of target investments.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

View from Seed

OCTOBER 22, 2015

Work on securing a lead investor who can then help in forming a syndicate. Don’t ignore non-partner level folks — in some firms, particularly for later stage rounds, nearly all investments will involve non-partner level staff on a particular investment who may have meaningful influence in how an opportunity is evaluated.

Term Sheet 120

Term Sheet Due Diligence Seed Stage Seed Capital 120

Feld Thoughts

JULY 30, 2015

We are early stage investors – if you’ve raised more than $3 million you are too late for us. We are syndication agnostic – we’ll invest with other VCs or invest by ourselves. Our late stage fund gave us flexibility to invest more money in our later stage companies.

Minneapolis 70

Minneapolis Phoenix Portland Syndication 70

Feld Thoughts

JUNE 6, 2012

We describe Foundry Group ‘s behavior as “syndication agnostic.” This is true at early stages but also true at later stages. Because we are syndication agnostic, we are delighted to work with great co-investors and welcome and encourage the interaction and partnership.

Syndicate 136

Syndicate Syndication Cofounder Angel Investor 136

Genuine VC

NOVEMBER 12, 2012

However, there was one gem of a small section in there with a more widely acceptable takeaway: “It turns out that the terms from your Series A are most often cut and pasted into your later round deals. When you compromise on terms in the early stages, you will have to pay the price in the later stages.

Finance 128

Finance Mezzanine Valuation Seed Stage 128

View from Seed

JUNE 16, 2015

Our investment size may differ slightly from one company to the next, but it tends to be driven entirely by situation-specific factors (needs of the company, syndicate composition, anticipated reserves, etc) … and not based on our belief. First, that the problem you’re tackling matters. Second, that you’re the team to do it.

Boston 120

Boston Syndication Syndicate eCommerce 120

Version One Ventures

MAY 22, 2018

Some of the best later-stage investors walk founders through an institutionalized “reverse” pitch. In the meantime, we’d love to hear how you decided on your investor syndicate? When we think about pitches, most of the focus is on entrepreneurs pitching investors for capital. What reverse pitch resonated with you?

Cap Table 60

Cap Table Cofounder Syndicate Syndication 60

View from Seed

JANUARY 26, 2016

Seed investors invested close to inception with the goal to taking companies to product/market fit, while Series A investors started looking for opportunities with more demonstrable PMF and early traction and invested larger amounts at somewhat higher prices in later-stage companies.

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120

David Teten

SEPTEMBER 6, 2015

Others follow independent financial lead investors and most require that independent investors be part of the syndicate. Bodas notes, “Some corporations are very technology and engineering centric so the technology risk that may come with investing in an earlier stage startup is more broadly understood within the corporation.

Venture Capital 60

Venture Capital Balance Sheet Technical Review Portfolio 60

Rob Go

AUGUST 26, 2013

As a result, many seed funds have pulled back, started making later stage investments, and even focusing more on mini-Series A’s with a syndicate of seed funds. But ultimately, this has come to roost over the past several years as the series A Crunch has pummeled a bunch of these companies and their investors.

Valuation 68

Valuation Seed Stage Syndicate Syndication 68

Austin Startup

APRIL 3, 2017

City leadership is actively championing the development of later stage funding sources, and the city’s culture lends itself to supporting that. The investment network here is growing, but is still grossly developing when compared to those coastal cities. However, Austin is well poised to catch up quickly.

Silicon Valley 48

Silicon Valley New York City San Jose Texas 48

Both Sides of the Table

APRIL 3, 2010

Because it is a “series&# I plan to get into some of the deeper complexities of funds such as “cross over funds&# and “why VC’s hate to price their own deals&# at a later stage. In my first deal we took angel money in the seed round (from 2 angels) and an early-stage co-investor in the A round.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

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. Although seed investing has become increasingly the domain of specialized seed funds, large lifecycle VC’s continue to participate as well.

Due Diligence 28

Due Diligence Seed Stage Syndicate Syndication 28

David Teten

FEBRUARY 3, 2014

Summit Partners and TA Associates have leveraged their origination programs to move into later stage buyouts. Specialty tools like Angel List , Gust , SeedInvest , and OurCrowd are emerging as potentially significant tools for sourcing early-stage investments. I’m looking forward to seeing how they evolve.

Private Equity 114

Private Equity Venture Capital Technical Review Equity 114

www.gabrielweinberg.com

AUGUST 28, 2012

I syndicated (helped them put together the round) in five: Notehall, MyZamana, Locately, Zippykid, and Instinct. VCs are worse -- they care but not in this stage; they're buying an option for later stages. Here are the basic stats: We've made eight initial investments and one follow-on.

Valuation 54

Valuation Syndicate Syndication Angel Investor 54

Austin Startup

MARCH 7, 2021

We’ve also seen an increase in the syndication of investments from firms outside of Austin into specific Texas-based companies such as Studio VC, Goodwater Capital, and Highland Capital Partners?—?all from growing startups to late-stage buyouts. all Bay Area firms?—? Texas is hitting critical mass as a global startup hub.

Texas 90

Texas San Antonio Houston Dallas 90

www.paulgraham.com

APRIL 28, 2010

Some angel investors join together in syndicates. Angels and even VC firms occasionally do this, but they alsoinvest at later stages. The problems are different in the early stages. Startups valuations aresupposed to rise over time. Any city wherepeople start startups will have one or more of them.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76