Fundraising · Venture capital

When VCs lead an investment round, do Angels join in? Do VCs like that?

MaxBlox/Founder Institute Director, Chennai Area at The Founder Institute

March 13th, 2015

Do Angels invest alongside when VCs lead a round? Do Angels syndicate with VCs? Do brand new Angels participate? What proportion do they generally invest in?

Edwin Miller 4x CEO | Founder/CEO at 9Lenses | Board Member | Author | Angel Investor

March 13th, 2015

In a seed round I like to find a small group of people that understand the market and people attacking that market.  At 9L we were able to bring together two customers and five other angels that were either at venture funds or attached directly to funds.  That provided a great foundation to our A round where the venture syndicate knew / had direct relationships with the angels.

Edwin Miller 4x CEO | Founder/CEO at 9Lenses | Board Member | Author | Angel Investor

March 14th, 2015

Also, many Angles are invested into funds and sometimes have a sidecar capability. 

Derek Bereit Startup founder || python neophyte, NY attorney, veteran || general counsel Nimbo || co-founder Symptomly | Techstars

March 13th, 2015

(1) Early rounds (seed; Series A) you take what you can get -- angels and VCs often co-invest -- usually a minimum amount to keep out riff-raff.  Angel Groups are better than small angels -- as they can invest via an entity and keep your cap table clean.  That said, wide spectrum of VCs (and angels) and diverse VC preference re: angels.

(2) Large Series A+ and beyond will be higher minimum that exceeds most angels bite size.  VCs may or may not allow angels, and often VCs will buy out early angels (and friends/family) to clean out cap table.