Series A to D Venture Investor Mandate: David on Betting on the Team
Series A, B or C Venture Capital Investor Mandate Interview
Founders raising a Series A to D round and investors who want to see how a venture network screens later stage deals.
Said on the call
"In the world of venture capital, the best returns you can get are in the later stage deals that have got strong venture capital leads."
"We look to get into deals that have a great management team in a big market."
"We use that network to get into deals that you can't get into otherwise."
What this talk covers
David is a venture investor who runs a network of 600 members and invests in later stage venture-backed companies from Series A through Series D. He and his business partners put their own money into every deal. The network has 15 chapters in the United States and is global, though most members are in the US. The focus is companies with LGBT leadership.
His thesis is that the best venture returns come from later stage deals with strong venture capital leads, and the network is how he gets into them. He looks for a great management team, a big market and strong investor supporters, then checks traction and terms. His main advice is to bet on the team. He also shared a story about an angel investor who studied 155 companies.
Facts from this talk
- David's network has 600 members and 15 chapters in the United States.
- The firm invests in venture-backed companies from Series A through Series D and puts its own money into every deal.
- The angel investor in David's story analyzed 155 companies and was a member of Tech Coast Angels.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Series A, B or C Venture Capital Investor Mandate Interview. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around venture deal terms, investor network rules and offering documents. Do not use AI to write your own legal agreements.
5 key takeaways
- Later stage deals are the focus. David's firm invests in venture-backed companies from Series A through Series D. Its thesis is that the best returns come from later stage deals with strong venture capital leads.
- The network opens deal access. The group has 600 members and 15 US chapters. David says it uses that network to get into deals that cannot be reached otherwise.
- Team, market and backers come first. David first looks for a great management team in a big market with a strong network of investor supporters. Only after that does he review traction and terms.
- Partner with industry specialists. The firm is not tied to one sector and does not claim to be an industry specialist. It looks to partner with people who really know what they are doing in each area.
- Bet on the team. David says this is the advice he wishes he knew 15 years ago. He described an angel who reviewed 155 companies, could not define a good CEO, but found traits among leaders who failed more often, and then stopped backing teams with those traits or without people to offset them.
- 1Assess management team
- 2Check market size
- 3Confirm investor supporters
- 4Review traction and terms
- 5Bring deal to members
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
Questions about this video
What stage of company does David invest in?
David invests in later stage venture-backed companies, from Series A through Series D. He and his business partners invest in every deal themselves.
Does David focus on one industry or region?
No. He is not an industry specialist and looks across the board, partnering with people who know each area. The network is global, but most members are in the US.
What does David look for first in a deal?
He looks for a great management team in a big market with a strong network of investor supporters. If he likes the traction and the terms, he brings the deal to his members.
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