FAQ: The Collective Syndicate
An FAQ guide to co-investing alongside Metagrove and other top-tier VCs
Over this past year, we have been inundated with questions, requests, and general interest in both our fund and our growing co-investment syndicate aptly named The Collective.
As a quick recap, The Collective was launched earlier this year to provide opportunities for Metagrove’s growing community of Limited Partners (fund investors) to also participate in co-investments on similar terms that would normally be difficult to access as an individual angel investor. However, over time, we have received increasing interest from the wider community of mentors, scouts, and advisors to join the syndicate and began gradually rolling this out. You can click here to see our original announcement on The Collective back in April.
Now, we’re taking this another step further and opening up interest for our broader investing community and we’re excited to do this to not only provide access to amazing companies and their founders but also provide you guys with the confidence of investing as part of a community alongside various VCs and notable angels.
Below is a short FAQ on some pertinent questions we’ve received from this interest and also how to get involved.
FAQ
What is The Collective?
The Collective is a co-investment initiative launched by Metagrove Ventures to provide access to hard-to-enter investment opportunities for its community who are active angels or those who are seeking to become investors for the first time.
Why are you doing this?
A good part of our mission is to provide our growing community the ability to be angel investors for the right reasons with the right people. Investing alone can be frightening and daunting for first-timers who may be solicited by the wrong founders. We want to help educate our angels but also provide them with the right tools to make informed decisions about their investments.
What leverage do you have to access these deals?
Metagrove was born out of the need to support early-stage founders building disruptive companies toward building the future of industry. Additionally, the makeup of Metagrove’s exclusive community spans both APAC and the US. This network consists of top-tier operators and founders from Silicon Valley and top-tier technology companies across these regions. For this reason, we are able to find and navigate into opportunities, but also where we can add our strong value-add. Our global focus also provides incentives for founders to engage with us.
Where do you invest?
Right now, we primarily invest across Australia, New Zealand, the US, and emerging South East Asia (Indonesia, Singapore, Malaysia, etc), based on our deep networks and team presence across these regions.
Do you look for a type of syndicate investor?
Yes, we prefer to have people within the syndicate who are active by asking questions, learning from each other, providing support to our founders, or even simply giving feedback back to us. We don’t ask a lot, but we value your skills and experience, so if you think you can help by being a mentor or advisor, we’d love to hear from you!
How do you present opportunities?
We usually break this down into two stages; periodic deal flow updates and a specific opportunity offering.
Periodic Deal Flow Updates — this happens every few weeks, where we send out a private newsletter and present a series of companies in our pipeline that are actively raising — usually a small blurb and some key facts. These deals are ones where we have already engaged the founder(s), performed preliminary due diligence and in further talks. We do this to prime potential investors and give them the “heads up” if we decide to proceed. We also usually ask questions and gauge the community to see if they can also provide feedback and their thoughts on what we’re seeing.
Specific Opportunity Offering — this is where we provide a particular offering to the syndicate after it has gone through the Investment Committee (IC). It usually includes our investment memo with the due diligence report, and we provide every investor to show their interest in investment. From here, based on the interest we’d set up the investment vehicle to execute the investment.
What about company updates?
Yep, company updates will be provided to investors on a deal-by-deal basis commensurate with the company’s reporting schedule to promote complete transparency with our investors.
Do you have to be accredited?
In short, yes, for now, you must either be an accredited and/or sophisticated investor depending on your jurisdiction of residence.
How much allocation do you get?
Allocation will be provided as negotiated between Metagrove and the company based on the current round and availability on the cap table.
What stage do usually get in?
Typically, our syndicate investments cover the pre-seed/seed stages, however, we will also do later stages (Series A, B) opportunistically or we decide to follow on with our pro-rata.
What investment vehicle do you use?
In short, such investments will be executed under a Special Purpose Vehicle (SPV) — a fancy way of creating and incorporating the investment entity. It’s our intention to domicile the SPV in the same jurisdiction as the invested company.
How do I get involved?
Click the button below and register your interest here to become a Metagrove syndicate member. If you’re already a part of our amazing community, feel free to share this with your network.
About
Metagrove Ventures is an early-stage investment venture capital fund, focused on supporting founders and companies who are building the future of industry by creating inflection points in the market.
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