What kind of investments does Cherry Ventures focus on?
Seed Stage
Lead/Co-Lead investor
first investment 500k - 5m
15-20% ownership target
Focus on Europe
How are Cherry’s funds structured?
Investment period of 3 years
35 companies per fund
60% of fund volume reserved for follow up investments
Generalist fund
company needs tech component
What is Cherry’s Motto?
Founders first and investors second
What are Cherry’s strategic ressources which they provide to the companies?
Multiple teams that help with:
recruiting
crafting media stories
financials
Cherry’s view of the macro economic development
2021 was an amazing year
more repricings and structured rounds to be expected in 2023
Down rounds are getting more common
Rounds with participating Preferred Stock is growing
Ecosystem is more robust compared to prior to downturn
Lots of money from investors still needs to be invested by VCs
Waht are consequences of Macro Trends for VCs?
Seize opportunities
Set bar higher
Reallocate Ressources (focus on portfolio companies to survive)
Plan exits later
What is the key thing Cherry looks for in pitch decks they recieve?
Team Slide
Then Business Model
Then Market Size
Not interesting if they don’t allow for $1b companies
What kind of valuation techniques does Cherry use?
No sophisticated techniques for companies w/o serious traction
It is a function of dilution (how much do they want to raise and how much ownership should they keep)
Different when deals are competitive
Last changeda year ago