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

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…...