Early vs Growth VC
Hi fellow monkeys,
Wanted to get your advice on the following:
- I’m currently at a VC fund that looks at primarily series A/B
- although we look at growth deals (late B to pre-IPO), our cheque size is too small to lead the rounds, we end up mostly as follow on investors
I would ideally like to have the optionality to join a global growth fund sometime in the future.
I wanted to know if these funds would consider my skill sets as relevant? Or would they look more toward someone with a PE-type skill set?
I understand later stage investments would be a lot more quantitative in the modeling. We do quite a fair bit of modeling as well for our series A deals, but there might be a chance people may disregard this given that the models would be of a much smaller scale. For series B deals onwards, we take on full independent due diligence as well, but that may be again disregarded as people generally then to see the lead investor as the main assessor of the deal.
Bump
Could you talk about the types of modeling you do for series A deals?
Also if you fund holds investments for a long period of time then wouldn’t you have the opportunity to model later stage deals by following on from early round investments into series B onwards?
Im in the same situation, doing A/Bs today and looking at later opportunities. It seems like growth arms of multistage firms could be a good fit, but would be tougher as you go closer to pre-IPO type of firms.
Following to hear if anyone else made that transition.
Curious if you could explain why you are looking at later ops?
When you say growth arms of multistage could you give an example?
This is just my view, but I think seed/A have become largely about network and ability to win deals (ie big brands or thematically-oriented funds). I struggle to see how I generate a real edge on that basis, but believe that as you start to get to Series B/C there's more of an opportunity to have a unique perspective on product/market/sales. Lot of money across the board, so everything's competitive but that's where I netted out.
When I say multi-stage, I mean anyone who would do both early-stage and growth-stage like Sequoia, A16z, Redpoint. They all have different sets of investors for early and growth.
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