VC Investing As an Investment Banker

Question

My best friends works at a VC firm in Cali and he sent across the DD for a potential investment. This is a very small fund in Cali that has been growing significantly over the past 2 years. I'm also very close with the founder and he's willing to let me put my own capital in play. I followed up on this and looked at the numbers, talked to the founding team, and sat in on a few meetings. If I could, I'd probably provide 100-150k of funding, but I'm concerned about the regulatory hurdles. Does anyone have any insight they could share?

sleepygoat · Accepted Answer

I agree. I can’t really invest in individual stocks, but I timed the market rebound pretty well last year and went all in on SPY thereafter. Accounting for my bonus (~110k) plus ~40k in savings, and 180k profits from investing, I’m not too concerned. This doesn’t mean I won’t do a lot of due diligence, but if the startup fails, I still have a lot of time to bounce back. This could be my way out of IB, and if everything goes as expected I can focus a bit more on investing which is my true passion.

Mephistopheles · Answer

Depends on your firms policies, but generally as long as you disclose it through compliance you'll be fine. I will say though, I think you are vastly overestimating the chance of success and would try to approach this with a smaller check size if you are able. VC strategy = Babe Ruth.

Legion42 · Answer

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Legion42 · Answer

You are thinking about BTC with respect to your privileged life “interning in IB - M&A” and failing to focus on how it affects people in poor nations.

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VC Investing As an Investment Banker

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VC Investing As an Investment Banker

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