Are there any successful bankers for late stage venture businesses?
This segment of the market feels underbanked. Why don't Series C, D, or E+ companies hire bankers to represent them during fundraising processes? I am certain they could field better terms from investors than founders could on their own, thereby immediately earning their fees.
This 100% exists. There was an FT article about American banks adding a lot of headcount to their Private Placement teams in Europe a week or so ago.
I've only interned in late-stage so take it with a grain of salt, but some venture firms see a banker-led process as an indicator that a company was struggling to fill the round. Since venture has a huge component of kingmaking, in the sense that firms will invest in companies because of a "blue chip cap table" aka cuz other good VCs invested in the company, firms generally like to see that rounds are competitive and that the startup has no need to bring in bankers to find investors. They don't like when deals are shopped around to everyone in the valley.
And/or they get better terms on non-banker-led deals. The partner didn't tell me that part though.
My MM has a private placement team, not a very big fee per deal but it’s great for the pipeline (ie company hires us for a private placement for small fee, helps the relationship for a later full sale).
soft distinction between "GE" and "Late Stage VC" check-writers. The latter, like their earlier stage brethren, usually shy away from intermediated deals.
Source: I did tech cap raises from B to E series, for 2.5 years.
Great points here. Additionally, many co's will end up bringing on someone in-house to run fundraising post-Series C / growth round, or roll the responsibilities into a head of corp dev / strategic finance role. These folks are usually someone who was VP+ in growth / PE / banking and know how to run a tight, targeted cap raise process - having operational involvement in a business helps with having an intimate understanding and crafting the best possible story.
A few things:
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