Q: Does the Band syndicate?
The Band often syndicates with other small VCs and angel groups. Because of the groups reputation it is often asked to lead such financings. The Band has participated in co-investments and follow-on investments with all notable Silicon Valley VCs including: Sequoia, Kleiner Perkins, Mayfield, Trinity, USVP, August, Canaan, Greylock, Accell, NEA, etc.
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Q: How long does it take for a company to receive funding from the Band?
The Band is made up of individuals who can act immediately. Occasionally, a syndicated deal will have another lead and a tight timeline. Members have participated in financings within 24 hours of the dinner presentation. However, if the Band is looked to as the “lead” on a financing, you should anticipate that it would take between 2-3 months for a deal to close.
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Q: When should I expect to provide references and due diligence materials?
Once the dinner has concluded our members will indicate their level on interest in your company. If a core group of members are interested in moving forward with the deal, Band of Angels will schedule a follow up meeting for you and those specific angels. At this stage you should be ready to provide our members with their requested materials and references.
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Q: What are typical term expectations if an investment is made?
Every deal is unique and a simple answer on term expectations is not possible. The guiding principal on terms is that incentives of everyone be aligned. If a Venture Fund makes 10 investments and 9 of them fail and one gets a 10x, the Fund has just broken even. Entrepreneurs must be motivated to make a hefty return for their investors. Likewise, the investors must ensure that entrepreneurs are consistently and substantially rewarded for their ongoing contributions and the risks that they undertake. With this guiding philosophy, the Band negotiates in the best possible faith to get to terms that proportionally and appropriate incentivize all parties.
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Q: How much money does the Band typically invest in companies?
The Band has invested more than $208M into approximately 241 companies since 1994; the average deal size is hence approximately $860k per deal. In 2010 and 2011 the average dollars per deal was $400k.
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Q: Does the Band always take a board seat position with each investment?
Companies typically like to pitch to the Band as much to interest one of our members to join the board as to acquire seed capital. Most companies that receive funding from the Band also receive at least one Band members as a board member.
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