General Filters
The “General” category includes filters that should be used as part of most investor search queries, aiding in how to find investors.
Investor Types
This filter allows users to limit search results to specific types of investors. The below table lists out the most common types of venture capital investors, which helps in understanding where to find investors.
| Investor Type | Inclination to Invest | Quantum |
|---|---|---|
| Accelerator / Incubator | Typically invest at the earliest stages (pre-revenue and pre-product) | 200+ accelerators across the globe that are actively investing |
| Angel | Typically invest either based on a personal relationship, or in the presence of a strong lead | 2,000+ angels that have made at least “1” investment in the past three months |
| Family Office | Invest personal family capital often without a formal process or approach | 100+ family offices that have made at least “1” investment in the past three months |
| Corporate VCs | Invest with a clearly defined mandate that is typically linked to their core business | 270+ Corporate VCs that have made at least “1” investment in the past three months |
| Venture Capital Firms | Invest with a clear thesis and strategy based on check size, stage and sector | 4,000+ VCs that have made at least “1” investment in the past three months |
For most companies, raising capital from Venture Capital Firms is the most common 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.
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 set the fund size and lifecycle based on your desired check size.
| Desired Check Size | Recommended Fund Size | Last Fund Raised |
|---|---|---|
| 0-300K | 0-75m | Since 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-1m | 50-150m | Users may want to limit search results to the past 2-3 years (depending on the preferred level of rigidity or flexibility) |
| 1-3m | 100-300m | Users may want to see funds raised within the past 3-5 years (as funds in this bracket tend to have a 10-year lifecycle) |
| 3m+ | 250m to 1b+ | Since there are fewer funds of this size, users may want to avoid using a filter for when the fund was raised |
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 them to slow down their pace of capital deployment. During phases of hibernation, investors still take calls and evaluate investment opportunities.
By applying a filter to set the Minimum Number of Investments in the Last 3 Months as “1”, founders can limit search results to those investors that are actively deploying capital.
Inclination to Lead
Of all active Venture Capital Firms, less than 50% tend to actively lead rounds. A majority of investors prefer to follow other investors and typically invest only in the presence of others.
The primary role of a lead investor is to set the terms and to take an independent position to invest at a specific valuation. Other investors then typically coalesce around the lead.
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. If other institutional investors have already invested at the current valuation in the round, then founders may not necessarily need a lead investor.
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.