Tali Vogelstein (Founding Investor @ Avid Ventures) on collaborative investing

  • Venture is not a zero-sum game. Being collaborative and finding the right co-investors can open up more doors and boost the odds of success for portfolio companies.
  • Exercising pro-rata is a privilege. The best investors earn the right to follow on by being disproportionately helpful at the early stages.
  • Founders usually need help with more things than they can count. As an investor if you outsource this work away, you are sending a negative signal to the companies you work with.
  • The best sourcing strategy is to help founders before they are fundraising.
  • Your LP base should be a source of value for the companies you back. When fundraising, think through how these LPs can help after a check is written.
  • First checks should be used to position investors to have the opportunity to write larger checks down the road.
  • It’s easy to overpromise when you want to get a term sheet signed. If you underdeliver after the deal, you have risked your reputation for one check.
  • Location used to be a limiter to a startups’ success; that is no longer the case. There used to be discounts in non-target geographies, but that has gone away.
  • Israel is a hub that has had recent exits that have spurred more innovation into the region. Look for this trend to continue.
  • One catalyst for Israeli innovation is the fact that nearly all citizens have to serve in the military. This experience overcoming challenges and working in tough environments has become an advantage post-military when they transition into the workforce.
  • Developing relationships with founders that will vouch for you is the best way to get into hot deals.