HVSF Investment Process

HVSF values constructive and collaborative investing.  We work closely with early stage founders to understand the vision, opportunity, and plan.  We seek to gain confidence in and comfort with the founder team as we explore the business in our diligence.  Our objective in each relationship is to offer value and perspective to founder teams with whom we interact.

The best time to initiate contact is before you begin your fundraising.  This gives us sufficient time to understand the problem that you are solving and to get to know the team.  Establishing early relationships enables us to become effective advocates when speaking with other prospective investors on your behalf.

 

We review submissions on a rolling basis.  If you think you are aligned with our investment criteria and have submitted your information, but have not heard from us, you have the option of following up with us by email.

Our Approach

We make every effort for our investment process to be respectful of the time committed by all participants including founders, fund managers, and investor participants.  We will get to "No" as quickly as possible, unless we really believe it's going to be a "Yes".  We strive to be a constructive participant in any fundraising process, whether or not we write a check, and and we will always communicate openly with founders. 

Application

We love hearing from founders by email, but if you are beginning a raise, please submit your application on Gust.  Think through your pitch and make sure it gives investors what they need.  We'll get in touch and set up some time for an introductory chat. 

Screening

The Screening Committee is held by video conference and typically includes 4-6 fund managers and investor members.  Founders present a 15 minute pitch to the screening committee and field questions for 10-15 minutes.  Potential outcomes are: Pass, Defer, or Pitch Members.

Membership Pitch

Membership Pitches are held both in person and by video conference and typically include 15-25 participants.  Founders present a 15 minute pitch and field questions for 10-15 minutes.  Review our Pitch Prep advice here.  Membership then votes on whether or not to consider an investment.

Due Diligence

HVSF endeavors to conduct stage appropriate due diligence.  We recognize that early stage companies don't always have the answers to every document request and may not be fully prepared for a process they haven't yet been through.  We are a constructive and flexible partner in diligence.

Investment Committee

Once an investment recommendation has been put forth, a memo is distributed to the investors with notice of a discussion and vote.  There must be an investor vote on each investment before finalizing a deal.

Deal Finalization

Once membership has voted to move forward with an investment, the management team is empowered to proceed with deal finalization.