Previous Post
Next Post
0

Asked by

Community Member

on

in

Venture Deals

Can a Small Angel Investment Be Used to Warehouse a Deal and Later Match Fund Investment Thesis?

Question around investment sizes when warehousing a deal: The angel checks I write are much smaller than what I would be writing out of the fund. I want to invest in a great founder which closes by EOY. We have discussed me coming in on a smaller angel check to warehouse the deal and then assuming I can first close basically follow-on with capital that would bring the investment size to match fund investment thesis (FWIW if I were to fail closing the founder is ok with just having me as an angel). Is that a viable path? Can a small investment be used as a warehoused deal?
1 See in Base
0

Answered by

Community Member

on

You can warehouse a deal of any size that is related to your Thesis. If they are too small, then it may appear strange to have in your fund. Unless your fund has a follow on strategy, then don’t plan to do a follow on, as this would be off strategy.

Join the Leaders of Venture 2.0

Our graduates are creating disruptive capital with exceptional expertise, ethical investing practices, and exceptional returns. Whether you're launching your first fund or scaling an established firm, VC Lab provides the tools, network, and support needed to succeed in today's venture landscape.

Apply Now
How do I start raising my first venture fund? What are the key considerations for becoming a Limited Partner?
How can I improve my emerging manager firm's deal flow? What strategies help attract institutional LPs?
How do I build a compelling investment thesis? What are best practices for portfolio management?
How can I differentiate my VC firm in a crowded market? What are the typical fund terms for emerging managers?