Should I Take This Money? 5 Major Ways VCs Invest In You — And How To Think About It

3 min read

VCs come in many different shapes: investment thesis, fund size, geographic focus, profit-motivated versus strategic returns, and how they invest. Indeed, VCs use a variety of investment vehicles including opportunity fund, special-purpose vehicle (SPV, also often called sidecar fund), cross-fund, evergreen fund, and scout fund. But what is the impact for startups? This post will focus deeper on this topic from an entrepreneur’s perspective, using the same 5-point framework. 1) Opportunity Fund — An opportunity fund is essentially extra money with different goals than the main fund. The two main goals are typically to (i) double-down on existing investments and…...

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Amit Garg I have been in Silicon Valley for 20 years -- at Samsung NEXT Ventures, running my own startup (as of May 2019 a series D that has raised $120M and valued at $450M), at Norwest Ventures, and doing product and analytics at Google. My academic training is BS in computer science and MS in biomedical informatics, both from Stanford, and MBA from Harvard. I speak natively 3 languages, live carbon-neutral, am a 70.3 Ironman finisher, and have built a hospital in rural India serving 100,000 people.