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Ask The VC About Follow-On Investing

Typically at the end of the meeting the VC will ask if you have another other questions that they can answer. While you can ask questions throughout the entire meeting, this structured window usually comes right after the end of meeting VC pitch.

One question that you should always try to ask is whether or not the VC typically makes follow-on investments in subsequent rounds. There are a couple reasons why this is important to do:

  • Having your existing investors provide additional capital in subsequent rounds can help you more easily meet your funding needs.
  • When your existing investors invest in subsequent rounds it makes raising capital from new investors easier, as follow-on investments signal that investors continue to believe in the company’s prospects.
  • Having investors communicate an intention to make follow-on investments early in the process can increase the odds of them doing so in the future. This conversation can set their expectations about continued involvement.

Comments

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This is a really interesting point, thank you for posting it!
However, will some VCs find it presumptious to ask about follow-on investing before you have even closed the first round?

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