search: results update below


browse funds: selections are stored



recently rated:

Rated by 3
2.1
 

top rated funds:

Rated by 12
4.1

Rated by 12
4.0
 

Rated by 11
4.0
 

Rated by 15
4.0

Rated by 21
4.0

Rated by 31
3.9

Rated by 41
3.9

Rated by 11
3.8

Rated by 44
3.8

Rated by 106
3.8

Rated by 32
3.8

Rated by 32
3.8

Rated by 64
3.7

Rated by 23
3.7

Rated by 27
3.7

Rated by 11
3.6

Rated by 18
3.6

Rated by 10
3.6
 

Rated by 62
3.6

Rated by 21
3.5

Rated by 12
3.5
 

Rated by 30
3.5

Rated by 28
3.4

Rated by 19
3.4

Rated by 14
3.4
 

Rated by 49
3.4
 

Rated by 16
3.4
 

Rated by 10
3.4

Rated by 13
3.4

Rated by 16
3.4

Please take a moment and make a financial contribution to TheFunded. If we have helped you, help us with resources to further grow the both the site and our entrepreneur training program, The Founder Institute.

Member Post

TheFunded.com is an online community of over 20,000 CEOs, Founders and entrepreneurs to discuss fundraising, rate and review angel investors and venture capitalists, and discuss strategies to grow a startup business. Enjoy the site, and be sure to join us at our Founder Showcase events to meet the community.

Sign-up for Membership

5
Agree
0
Disagree

Be Cautious with Current Investors in a New Fundraise

TheFunded.com Advice

Posted by Anonymous on 2008-02-05

Tags: Preparation Targets

PUBLIC:

Your current investors will often have different motives with a new financing round that you do, so be extremely careful. Maybe they want to get more equity at a good price. Maybe they have internal fund pressure to show portfolio growth with a higher valuation. Maybe they want to gain some more investor control to force a liquidity event. Many times, old investors will pressure a company to raise new capital, and almost always the motives of existing investors in a fundraise is not what they appear to be.

The best advice is to take the time to engage in a proper fundraising process, even if you have "insider interest." Most of all, do not accept an internal offer without at least trying to secure one or two additional external offers. Your existing investors can be counted on to help make some introductions to other funds, and you should encourage them to participate at their pro-rata allocation.

It's your job to get the best possible terms, and there is no question that you are better off with multiple interested parties bidding up the price, even when you are busy growing the business.

PRIVATE: Members Only