My pre-revenue venture recently landed a Definitive Agreement from a Fortune 500 Company that projects $30M in revenue. A MD at a family office is interested in investing $1M-2M of our $5M+ ask if we can find a lead to put in $800k+ and conduct due diligence. The MD says he'll offer a Letter of Intent regarding that investment if his partners are on board. This firm mostly invests in much bigger deals in a different vertical.
How common is it for an investment firm to step out of its comfort zone with an offer like this?
Is it common to receive a LOI for an investment that's contingent on a lead investor? I wonder how other investors will react if we approach them with such an LOI the Definitive Agreement.
The firm is stepping out of its comfort zone specifically because you have an agreement for $30 million in revenue. Many investors will make their investment contingent on your ability to raise all the funds that you need. If you are wondering how investors will react , you probably have very little experience dealing with investors. That alone is reason for you to hire someone who can negotiate for you.
I IWORK IN THE NON PROFIT WORLD BUT DO YOU DO "B" CORPORATIONS.
T A C;IIE