In a recent conversation with a young woman founder, I was asked whether founders should raise their first institutional round from multiple investors (a “syndicate” round) or close with a single investor. Considering less than 2% of VC money went to women founders in 2022, 0.5% down from 2021, is the additional effort of raising a syndicate round worth the incremental benefit? Both options have their pros and cons, and the nuances of each approach should be carefully considered before making a decision. Single Investor – Pros Streamlined process – Even disregarding the changing fundraising environment, the preference for raising…...
First Institutional Raise – Single Investor Or Syndicate?
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