Capital investment below $10M is challenged by the fact that these investments require the same level of effort required by a larger investment. The companies seeking investment are less prepared with due diligence materials, require more analysis and have a higher risk profile. Additionally, the VC firms have raised larger funds that require higher quality deal flow and have larger transaction sizes. Thus, an ability to have prequalified deals with due diligence data rooms that are fully populated will allow the VC the ability to quickly access high quality deals that are ready for review. Additionally, many of the corporate venture capital groups have expressed the desire to not price a round, but would rather syndicate with other venture capital groups. This membership is restricted to invited venture capital partners who target investments between $1M and $10M primarily in Texas.
Access to a considerable number of new and high-quality investment opportunities;
Reduced cost of acquiring deal flow and performing the collection of due diligence materials;
Access to the observations and recommendation of industry experts (Executive Sponsors) who are willing to co-invest, provide consulting, or advice, or join the board of directors and or management;
Easy syndication of deals with other members;
Increase deal visibility to other investors and or PE firms who may have interest in an acquisition
System and tools to receive investor updates and to maintain up-to-date portfolio materials; and
Ability to participate priced market ready deals with other investors.