SuperAngel.Fund😇 | Investor #1 & Founding Advisor @quip🦷 @Caraway🏠 @Arber🪴 | Consumer (CPG, eComm SaaS), PropTech & Future of Work | ben@superangel.vc
For many investors, particularly those who are Solo GPs, I can tell you that their time is probably broken up into three main functions: - ⅓ is dedicated to raising capital - ⅓ is dedicated to deploying capital - ⅓ is dedicated to supporting the companies that they invested in But, the ratio between all three core functions is always in flux. As a founder, it’s useful to understand how and why an investor is allocating their time. For example: If the economy is in a period of growth, venture investors are likely to be spending the majority of their time raising capital + deploying that capital. - They’re moving quickly and writing checks after a short period of due diligence. Things are organically working out and so less time goes into portfolio support. If your investor has recently closed a new fund, they will probably be focused on deploying that capital + supporting those portfolio companies. - These investors have money to spend and they don’t want to blow it all in one place. They’re going to be more deliberate and methodical in their investment strategy. If the economy is in a period of instability or in a downturn, most investors will spend time time supporting their existing portfolio companies as opposed to making net new investments. - These investors will be more focused on assisting their portfolio companies cut costs and raise bridge rounds. At the moment, we’re in an environment of very limited capital supply. Startups are cutting costs, laying off employees, and preserving resources. Investors (myself included) are spending an enormous amount of time doing portfolio support. The goal is to help stabilize the startup so that it’ll be in a better position when macro conditions eventually improve. If you know how your investor is allocating their time, you can position your pitch and your “ask” accordingly.
Xander Oltmann
4mo
You forgot about ish posting
Founder & GP @ Also Capital
4moI'd add a fourth...network development. A VC can only be as helpful as the quality and engagement of their network allows. It takes a consistent effort and investment of time (and often money).