After the initial seed investment typically done by Business Angels, startups usually need to raise more capital from Venture Capital Funds to sustain their growth plans. This transition is not always easy and smooth, so good coordination between the first and the second group is essential.
Venture Capital funds can find in APBA the right partner to help them getting early visibility of the deal flow, which will result in more informed investment decisions. By monitoring the investments done by Business Angels from the beginning Venture Capital funds can track the most important metrics and establish a privileged relationship with Business Angels and Founders that can give them an edge when companies need to raise the series A.
By collaborating with Business Angels, Venture Capital funds can also help to shape the structure of the deals that will make for a clean investment down the road. The first legal documents signed with Business Angels can materially affect future rounds and it is important to avoid the pitfalls that can prevent a good deal from being done.
Acting as an investor hub, APBA can facilitate the right relationships and knowledge transfer forums that will serve as the basis for successful investing and exiting of early stage companies.