Unlocking Liquidity: How Secondaries Benefit VCs and Early Investors in Venture Capital
In the world of venture capital, where long-term investments and illiquidity are common, secondaries have emerged as a valuable tool. These transactions provide liquidity options for venture capital firms (VCs) and early investors, allowing them to manage their portfolios effectively and generate returns before the occurrence of a significant exit event like an IPO or […]
Building a Strong Foundation: Best Practices for Emerging VC Fund Managers
Venture capital (VC) plays a critical role in fueling innovation and supporting the growth of startups. For emerging VC fund managers, establishing a successful fund and navigating the competitive landscape can be a challenging endeavor. To help aspiring managers set a solid foundation for their ventures, this article outlines key best practices for emerging VC […]
A Short Guide to Venture Capital
Venture capital – often referred to as ‘VC’ – remains one of the most popular sources of financing for startups. With venture capitalists pouring billions of dollars into early-stage businesses, VC has transformed into a critical part of the startup ecosystem. In this short guide, we’ll touch on the world of venture capital, exploring what […]
Guide to Venture Capital Funding Rounds
Venture capital funding typically follows a structured progression of rounds, each with a different level of investment and different expectations for the startup’s growth and development. Here are some of the main types of venture capital funding rounds: 1. Pre-Seed Funding Pre-seed funding is typically the first round of funding for a startup, and is […]
Angel Investors vs Venture Capital Investors
Angel investing and venture capital investing share a common goal of financing and supporting startups and early-stage businesses. When comparing Angel Investors vs Venture capitalists, these two forms of investing also have a number of important differences. These include: 1. Investment size Angel investors typically invest smaller amounts of money, ranging from a few thousand […]
5 key considerations for building your Venture Capital Syndicate
A ‘venture capital syndicate’ refers to a group of investors who pool their resources together to invest in high-growth startups or early-stage companies. Such syndicates allow investors to diversify their portfolios, share the risk, and leverage the expertise and networks of other investors to identify and support promising ventures. Below are some best practices and […]
Demystifying Special Purpose Vehicles (SPVs)
If you’re running a business or thinking of starting one, you may have come across the term “SPV” or Special Purpose Vehicle. At first glance, it may sound like a fancy car or something that only astronauts use, but in reality, it’s a popular business structure that offers a range of benefits. So, is an […]
SPVs vs VC Funds
In business, as they say, you must speculate to accumulate. In order to make money you must first spend money, and therein lies the problem for many. In today’s economic climate, with record-breaking inflation, rising interest rates, and global economic turmoil, investing in the right businesses is now more important than ever. It’s easy to […]
SPVs: Democratizing Alternative Investments
Angel investors can use Special Purpose Vehicles (SPVs) to make Venture Capital investments by pooling capital from multiple investors and creating a separate legal entity to make the investment. Here’s how it works: 1. Pooling Capital The angel investor can bring together a group of investors who are interested in investing in a particular venture. […]
6 reasons why a VC fund manager should use SPVs
When it comes to investing in early-stage startups, a venture capital fund manager (VCFM) typically pools their investor money into a single entity, known as a ‘fund’. However, there are times when a VCFM may opt to use a special purpose vehicle (SPV), either instead of or in addition to a fund. In this article, […]
