Entrepreneurs are often frustrated with the process of raising venture capital—and for good reason. Time intensive and redundant processes. Long cycle times. An extraordinary amount of work with an uncertain outcome. As former entrepreneurs, as well as venture capitalists, we designed a better alternative.
Spend Less Time Fund-Raising
Correlation Ventures makes investment decisions in just two weeks or less—so you can close sooner and grow faster. In addition, we minimize disruptions to entrepreneurial teams by not repeating due diligence performed by your lead investors, such as calling key customers and partners. We simply need a handful of readily-available documents to evaluate an opportunity.
Get the Capital You Need
More than one third of U.S. venture financings don’t raise as much capital as they targeted. And many venture-funded companies fail because they run out of capital before finding out whether their technology works or their product sells. Correlation Ventures offers an ideal source of capital to fill out a financing round. As many entrepreneurs and investors have learned the hard way, it’s often wise to take the money when it’s available.
Optimize Your Board
Our analysis has shown that too many venture capitalists on a board can reduce the probability of a successful outcome. Correlation Ventures doesn’t take board seats, so you gain greater control over the make-up of your board. You may choose to maintain a small, highly optimized board. Or you might prefer to add a targeted independent director to fill a strategic need.
Improve Visibility into Future Financings
For most private companies, fundraising is not a one-time event. So investors who decide at the last minute not to participate in a subsequent round—or who introduce a burdensome process—can harm your company’s chances for success. Correlation Ventures informs you upfront what our reserves will be for future rounds. From there, we typically follow the lead investor pro rata into future financings until we reach our reserve cap. This level of transparency and reliability helps you successfully plan and close future financings.
When Is Correlation Ventures Right For You?
There are many scenarios in which Correlation Ventures could be an ideal co-investor for your company. Some examples include financings where:
- The round is not yet fully subscribed and additional capital from an institutional investor would be of value
- Speed in closing is particularly important
- You don’t want additional investors calling key customers, repeating due diligence or distracting you from other priorities
- Just a small piece of the syndicate remains available—too small for many venture firms to be interested
- Alternate investors are suboptimal, such as those who require a board seat or other special terms