SICTIC

Leading angel investor network that connects smart money to technology startups in Switzerland

Follow-on Investments in a Startup

When and When Not to Do Follow-on Investments in a Startup?

 

Startup Investment Skills from Experienced Investors (Episode #6 – Part II)

When and When Not to Do Follow-on Investments in a Startup?

by Michael Sidler, Co-Founding Partner of Redalpine Dr. Michael Sidler has co-founded Redalpine Venture Partners AG in Zürich in 2006 and acts as manager and partner for three funds, Redalpine Capital I, II and III. Redalpine is a venture capital investor in technology and life science cases in Europe. During his Ph.D. in molecular biology he soon realized that his interests were much broader. This led him to joining The Boston Consulting Group. During that time, in the dotcom bubble, he made his first steps as a business angel. “I lost more money than I gained, but that only heightened my enthusiasm for startups”. Consequentially, in 2003 he joined Prionics, one of the early Swiss role-model startups. Following his passion, he eventually changed the sides of the table to focus entirely on venture capital – because it’s in the hot spot of his interests: “firstly, science, innovation, and technology; secondly, entrepreneurship; and thirdly, the financial world.”

Chapters:

  • 0:00 – Intro
  • 0:19 – Should an Investor have a Follow-On Investment Plan?
  • 01:31 – What Do You Do if the Startup Is in Peril and Needs Financing?
  • 05:42 – Are There Any KPIs to Look For When the Startup Is in Peril?
  • 07:05 – What if the Team Is Not Performing? How Do You Communicate This?
  • 11:21 – Are There Any Specific Requests an Investor Should Ask the Founder in a Follow-on Round?
  • 13:30 – What Is Your Key Learning About Follow-on Investments?
  • 14:33 – Are There Learnings About Failures?

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