‘b’ Stands Before ‘a’ In Venture Investing
Most classical venture capital firms prefer to become the first institutional investor in a startup. Though risky, funds enter at a lower valuation in the first round, and hope to multiply the value of their investments when the company goes for subsequent rounds of funding or an exit.
So, ideally, VCs’ sweet spot has been the first round of investment or Series A. But, if the trend in investment stages is any indication, venture capital funds in India have shown a tendency to shirk risk and go for more established companies or those who are already backed by VCs. Even ...
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