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Investor Types

The below table lists out the most common types of venture investors. For each investor type, the table identifies the typical inclination and the quantum of investments:
Investor TypeInclinationQuantum
Accelerator / IncubatorTypically invest at the earliest stages (pre-revenue and pre-product)200+ accelerators across the globe that are actively investing
AngelTypically invest either based on a personal relationship, or in the presence of a strong lead2,000+ angels that have made at least “1” investment in the past three months
Family OfficeInvest personal family capital often without a formal process or approach100+ family offices that have made at least “1” investment in the past three months
Corporate VCsInvest with a clearly defined mandate that is typically linked to their core business270+ Corporate VCs that have made at least “1” investment in the past three months
Venture Capital FirmsInvest with a clear thesis and strategy based on check size, stage and sector4,000+ VCs that have made at least “1” investment in the past three months
For most companies, raising capital from VC Firms is the recommended approach. As an asset class, VC has a proven model to invest in early-stage companies (even when the odds of success may not be high). Other investor types typically play a peripheral role in rounds that are led by VCs. Additionally, different types of investors tend to be more active at different stages. Within the filter view, users can toggle by stage and see which types of investors are most active at a given stage.

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Fund Size and Lifecycle

Most investment firms have a check size that is roughly 1-2% of their total fund size. As an example, an investment firm that raised a 10m venture fund will likely invest 100-200K per company. The below table provides guidelines on how to identify investors that have a fund size that is appropriate for your desired check size:
Desired Check SizeRecommended Fund SizeLast Fund Raised
0-300K0-75mSince there is a large number of small funds, and since most small funds tend to deploy capital quickly, users may want to limit search results to fund raises within the past 1-2 years
300K-1m50-150mUsers may want to limit search results to the past 2-3 years (depending on the preferred level of rigidity or flexibility)
1-5m100-500mUsers may want to see funds raised within the past 3-5 years (as funds in this bracket tend to have a 10-year lifecycle)
5m+500m+Since there are fewer funds of this size, users may want to avoid using a filter for when the fund was raised

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Investment Activity

At the beginning of a round, it may be best to approach investors that have made at least 20+ investments over their lifetime. Firms that have made a total of less than 20 investments are either just starting out, or haven’t been very active. At any given point in time, more than 60% of all venture investors are in a state of hibernation. This can be due to a variety of reasons, ranging from inability to raise subsequent funds to a shift in strategy that leads funds to slow down their pace of capital deployment. During phases of hibernation, many investors continue to take calls with founders. By applying a filter to set the Minimum Number of Investments in the Last 3 Months as “1”, founders can limit search results to only those investors that are actively deploying capital.

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Inclination to Lead

When starting out a new raise, founders typically need to limit their pursuits to only those investors that have historically led rounds for a healthy percentage of their portfolio companies. This is particularly important for founders that are looking to raise rounds greater than $2m.
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Fewer than 40% of All Investors Lead Frequently

Of all active venture investors, less than 40% have frequently led investments for their portfolio companies in the past. Specifically, an investor that has led at least 10-15% of their total portfolio investments can be termed as a “frequent” lead investor.
2

Lead Investors Move Independently

A defining characteristic of lead investors is that they move independently (without requiring the presence of other investors to commit). In the event that an investor wants to see others in the round before committing, then that is a clear indication that they either do not lead, or aren’t eager to lead in the given scenario.
At the beginning of a round, when there are no other institutional investors that have invested at a specific valuation, founders need a lead investor that has historically led rounds. The “Inclination to Lead” filter allows users to identify investors that have led a minimum percentage of their portfolio investments (whereby the minimum percentage is configurable). With this filter, founders can use historical data on venture investments to identify firms that have the capacity and the inclination to lead rounds.
For guidelines on party rounds that don’t require a lead, refer to this section.