What kind of companies do you invest in?
NextGen strives to invest in potentially category-defining companies that have demonstrated strong customer interest in their product.
- Stage: We invest in seed deals, where we can lead rounds of up to $1.5M, as well as participate in Series A investments.
- Geography: US-based
- Industry: Agnostic, although we focus on companies where our Venture Partner network can help drive revenue.
How much money do you invest?
Our typical check size is $500,000 - $750,000. We can go as low as $300,000.
How does your investment process work?
Our investment process looks like a standard venture firm with two exceptions:
- Instead of a traditional partners meeting, NextGen creates a small Investment Committees comprised of Venture Partners, most of whom will have work experience relevant to the company. The traditional presentation and discussion will take place with this Investment Committee and be conducted virtually.
- After an investment decision is made, we ask entrepreneurs to spend 45 minutes on a group phone call with Venture Partners who are interested in potentially investing.
How long does your investment process take?
If we are leading an investment, the time from initial contact to wire is generally around 8 weeks. If there is another lead investor, the time from initial contact to wire is generally around 4 weeks.
Why should I work with NextGen over another venture firm?
The hundreds of Venture Partners in NextGen’s network all commit to helping our portfolio companies with expertise and advice – whether or not they personally invested. We have a full time person on staff who acts as a concierge for our portfolio companies, helping them leverage our network of Venture Partners. The key areas where we can be helpful are:
- 30-60 minute conversations with Venture Partners who have deep functional expertise (SEO, building a sales team, content marketing, etc.) and are available if and when needed.
- Connections to customers or distribution partners
- Connections to sources of downstream financing
- Connections to potential hires
With such a large network, how do you ensure information stays private?
NextGen places a heavy emphasis on keeping information private:
- Aside from a “teaser” email that goes to the full network and contains only a high-level description, all other company information lives on our platform – which requires a login and password to access. Company information is not downloadable.
- Entrepreneurs can choose to bar Venture Partners who fall into certain categories (e.g., work at a potentially competitive company) from seeing any information beyond the teaser email.
- Entrepreneurs can choose to limit access to particularly sensitive information