If you’re starting a business that may never IPO and might max out at a healthy $10 – 50mm a year business, many VCs (even early stage VCs) won’t be interested. If they are, they’ll likely encourage you to pursue something they would consider a larger opportunity.
A couple of things to consider:
If people mess it up, here’s the original
On the interwebs, when journalists compile lists of people who have done early stage deals, the important information is missing (are they an angel, seed fund or vc?). You want to talk to the right people for your company. Basically, if you try to raise venture money too early, or when it isn’t appropriate for your business, you’ll spend time confused.
- VCs and most Seed funds value growth over profitability.
- VC and seed investments are often not investing their own money.
- VC and seed investments often have a time-horizon they expect a return to give profits back to their investors.
- Angels may be happy with a $5mm acquisition whereas a VC probably wouldn’t.
I’m trying an experiment. So if you want to add new people or additional info about the folks on here, feel free:
- Angel: $25,000 – 50,000 per investor
- Seed: $100,000 – $250,000 per investor
- VC (Early Stage): $200,000 – $1mm per investor
The goals of each investor type are different. Conversations with the wrong folks may skew your thinking about your business. Angels can be successful with different outcomes than Seed and VC investors. But, when you’re ready to go big, VCs are a great way to get you there.
Now, you want to talk to people about your deal. Here are a list of people I got from Business Insider. I added 1 person to make it 101 New York City Early Stage investors. And supplemented it with information to figure out what type of investor they are.
Hi, I'm Colin Nederkoorn co-founder and CEO of Customer.io.