How do Startup Programs and VC Funds work together?
The structure of the partnership is usually rather basic, the VC Fund invests in a startup, this startup goes through a Program, and then once it has grown, the Fund makes a second and even third investment. Through each of these steps, value is added to the startup, and each venture can build and gain from the work of the other. Additionally, through working together Programs and VC Funds can improve on their strengths and weaknesses. For instance, a young Program partnering with a VC Fund that has been functioning for years can help them gain knowledge and experience. The same thing can work the other way around.
Another important aspect to take into account when choosing to work with another organization is to have similar objectives or tackle similar problems. One example of this is the collaboration between the AC75 accelerator and the SOSV VC Global Fund. In this case, the accelerator focuses on the silver economy while the VC fund has quite a large presence in Asia, which is the continent with the largest number of people entering old age. Thus, the VC Fund can provide financing and a large market for startups while the AC75 accelerator offers innovative solutions to the problem in Asia. Hence, entering new markets together can also be a good way to partner with another organization. Another example is the collaboration between 500 Istanbul and TechStars Accelerator. While 500 Istanbul VC Fund works mostly in Turkey and Greece, they can also offer an entryway to Blue Ocean Markets in the US through their large investments and partnership with TechStars. Here the partnership is a great opportunity for startups to access markets they would have not been able to, or had a harder time entering had this association not existed.
Lastly, organizing a Demo Day where startups can present a pitch for investors can be something VC Funds and Programs work together on. Either the Program can help make a presentation for VC Funds or VC Funds can help startups make a presentation for future investments. In any case, when working together both organizations can maximize the positive effects their work can have to grow a startup and create a larger and longer-lasting impact together. Thus, if you are running either venture or are thinking to do so, partnering with other members of the startup community can open new markets or offer knowledge and experience to grow your organization.
Founderhood can help make the process more seamless. Having both organizations on Founderhood is a great and easy way to establish peer-to-peer communication between different organizations, where both can speak the same language. Make Founderhood your common ground today and expand the reach of your program by visiting www.thefounderhood.com. See you soon!
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