Crowdfunding vs Angel Investing
Startups have a smörgåsbord of options when it comes to fundraising. Two popular sources of financing are crowdfunding and angel investors. Both provide much needed cash, but they have some important differences. Crowdfunding is a method of raising money from a large number of people, typically through an online platform. Crowdfunding campaigns can be equity-based, […]
Navigating a Down Round: Tips for Startups
As a startup founder, you may have heard the term “down round” before. It’s a funding round in which a startup raises money in a funding round at a lower valuation than its previous round, and it can be a sign of trouble for your startup. But don’t worry – there are steps you can […]
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 […]
Should I raise a Fund or start with SPVs?
Deciding whether to raise funds or start with special purpose vehicles (SPVs) depends on several factors, such as your investment strategy, the size of the investments you plan to make, your investor network, and your ability to manage and operate a fund. Here are some pros and cons of each option to help you make […]
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. […]
Why Founders Should Use a Founder SPV to Simplify Their Cap Table
Starting a business comes with a unique set of challenges. Every step requires focus, from building your product to acquiring your first customers and raising funding. For startup founders, understanding the role of an SPV can be essential, especially when managing your cap table, a critical but often underestimated task. As a startup scales and […]
