Investor coherence

There are many type of individuals and organisations that invest into startups. They share the same label, “investors”, but the way they think about how a startup should be financed, growth vs profit, acceptable levels of risk, if the startup should be aiming for a small or large outcome etcetera can differ a lot.

I.e. a typical early-stage venture capital fund will think differently about those things than a typical family office will and both will likely think differently from a private equity fund.

While beggars can’t be choosers, it is highly valuable to have investors that think the same way as the founders and the other investors about fundamental aspects of company-building on the cap table. Coherence will allow the founders to focus their time on building the company instead of managing investors.

Author: Henrik Torstensson

Partner at Alliance VC. Investing in Nordic early-stage tech startups.

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