After we discussed the process of decision-making in angel networks, let’s look into the processes of VCs.
Harvard Business Review had done a survey and interviews with the vast majority of leading VC firms. Specifically, the team asked about how VCs source deals, select and structure investments, manage portfolio companies post-investment, organize themselves, and manage their relationships with limited partners. There were responses from almost 900 venture capitalists — making the study the most comprehensive to date.
They found that…
Even for entrepreneurs who do gain access to a VC, the odds of securing funding are quite low. Our survey found that for each deal a VC firm eventually closes, the firm considers, on average, 101 opportunities. 28 of those opportunities will lead to a meeting with management; 10 will be reviewed at a partner meeting; 4.8 will proceed to due diligence; 1.7 will move on to the negotiation of a term sheet with the startup; and only one will actually be funded. A typical deal takes 83 days to close, and firms reported spending an average of 118 hours on due diligence during that period, making calls to an average of 10 references.
Though VCs reject far more deals than they accept, they can be very aggressive when they spot a company they like. Vinod Khosla, a cofounder of Sun Microsystems and the founder of Khosla Ventures, told us that the power dynamic can quickly flip when VCs become excited about a start-up, particularly if it has offers from other firms.
As the investment climate has turned investor-friendly this year (2023), this panel will interview VCs about how their investment funnels and decision-making process are structured, with a focus on deep tech startups.
Topics:
Introductions of Lam Capital/Research, SOSV, TINVA, Ceres Capital and their missions and stages of startup engagement/investment
The process of deal sourcing, evaluation, due diligence, decision-making, negotiation and more in different VC firms
The most important considerations and their priorities for decision-making in different VC firms
A good company and a good deal, what’s the difference?
The involvement and exit strategies after investing in startups
The prioritized innovations/solutions you are looking for from startups now
Advice for deep tech startups to build a relationship with you as well as fundraising preparations
Whether you are an entrepreneur or an angel investor, if you are interested in joining the conversation, and asking your questions to the panelists, including feedback on your startup, market insights, etc., sign up here. This is an invitation-only event. If you sign up, you can ask questions, and no matter whether you join or not, we’ll send you the meeting summary.
Speakers
Alexander Hall-Daniels – Alex is a program manager and had been a senior analyst with SOSV IndieBio’s New York office, a VC investment firm operating within biotechnology and life sciences. He has a diverse, global perspective cultivated from the wealth of international professional and educational experiences across the US, UK, and the rest of Europe.
Mike Huang – Mike is an investment manager with Lam Capital (Lam Research CVC), focusing on semiconductor manufacturing startup investments now. previously he has worked with Amazon, Samsung Electronics, and TSMC. He has an educational background in technology management and MBA from Taiwan and UK.
Yvonne Chen – Yvonne has over 20 years of success in telecom, security, MedTech, and early-stage investments and operations, including handling corporate investments at MICROELECTRONICS TECHNOLOGY INC., CDIB & PARTNERS INVESTMENT HOLDING CORP., H&Q TAIWAN CO., HTC CORPORATION, WI Harper, and Infinity Ventures. She has strong industry expertise and connections in Taiwan, Greater China, and Silicon Valley.
Jessie Chuang – Jessie is a startup advisor with US and international teams, a judge with Unicorn Battle and MassChallenge, an angel investor with several US angel networks, and an emerging venture fund manager. Her previous experience includes 10+ years in semiconductor R&D and team management at UMC, and another 10+ years in corporate consulting on digital transformation working with executives.
About TINVA
TINVA (Taiwan ITRI New Venture Association) is a Non-Profit Organization startup facilitator and venture builder that partners with various deep-tech stakeholders in order to provide startups with the resources, mentors, tools, and support needed in order to succeed. TINVA is associated with the top deep-tech research institute ITRI backed by the Taiwan government – the top source of deep-tech startups and innovations in Taiwan.
About Global League
Global League is an investor partnership with augmented collective intelligence built from a process proven by top angel networks with an average IRR >25% and 330+ exits. We connect quality investment opportunities from top US angel networks and VCs and collect intelligence from co-investing fellows.
About Founder Institute
The Founder Institute is the world’s most proven network to turn ideas into fundable startups, and startups into global businesses. Since 2009, our structured accelerator programs have helped over 7,000 entrepreneurs raise over $1.75BN in funding. Based in Silicon Valley and with chapters across 100 countries, our mission is to empower communities of talented and motivated people to build impactful technology companies worldwide.
About Wise Ocean
Wise Ocean builds up a global network to connect proven startups or scaleups, industry leaders, corporate innovators, ecosystem partners, and investors for impact and profit-making. For international startups entering the US market, we will help navigate US resources (partners or accelerators) matched to your needs, for US companies looking for Asia manufacturing or market partners, we have several partners that can help, such as TINVA.