Frequently Asked Questions

Where does Velocity Venture Capital invest?

Our firm invests exclusively in companies that are headquartered in the greater Sacramento area. Given that our primary focus is on companies that are early in their business life, we believe that it is important to be close in proximity to our portfolio companies. We add value by working actively in Board and advisory roles.

In which industry sectors is Velocity Venture Capital most interested?

Although we look at investment opportunities in all technology sectors, we primarily make equity investments in companies focused on the following sectors:

Information Technology
- Software
- Semiconductors
- Network & Equipment
- Internet
- Broadband & Wireless
Clean Technology
- Clean Energy
- Agricultural
Life Sciences
- Medial Devices
- Biotech

At which stage of development does Velocity Venture Capital typically invest?

We primarily invest in seed and early-stage deals; true seed deals, Series As, and occasionally Series Bs. We actively invest along side angel investors in seed deals and venture capital firms in early-stage deals. We like to be the first institutional investor to invest in the company, and we work actively with management teams to attract other investors in current and future rounds of funding. Building a syndicate of investors can be a startup CEO's most challenging job. As a "financial partner", we view it as part of our job to both invest and draw more capital into our portfolio companies.

How much capital does Velocity Venture Capital typically invest?

Our approach is to lead rounds of funding with $100,000 to $1,000,000 investments in total round sizes of $500,000 to $5,000,000. To complete the investment syndicate, we typically invest along side other leading venture capital firms. Although our ownership percentage varies, we always establish the appropriate capital reserves to maintain this percentage as the company grows and achieves a successful exit.

What is Velocity Venture Capital's role with my company after the investment is made?

Velocity Venture Capital's team is comprised of people who enjoy "company building". Our fund management team plans to sit on the board of every investment we make, and we support our investments by focusing on:

Corporate Strategy
Building management teams
Building Boards and Advisory Boards
Assisting with the optimal go-to-market strategy and introducing prospective customers
Introducing key strategic partners
Raising capital from angels, VCs, and Strategic investors
Assisting the management team with an IPO or acquisition

Our fund management team’s startup, industry, and exit experience provide Velocity portfolio companies with a supporting team that stays well versed on the challenges facing the company. Our firm typically dedicates two team members to each portfolio company --one plays an official Board of Director role and one plays a Board Observer role. We stay well informed and well positioned to offer valuable insight and advice to our portfolio companies.

What is the best way to contact Velocity Venture Capital?

We are very approachable and entrepreneur-friendly. Simply email your business plan to dealflow@velocityvc.com. If you don't yet have a formal business plan, you can still contact us with an email to tell us about your business concept. With that said, using an introduction source that is well known to our firm can significantly improve efficiencies in our due diligence process.

What if I don't yet have a formal business plan?

Our firm does not require a full business plan prior to taking a meeting--an executive summary or a brief overview via PowerPoint is often enough. With that said, a great deal of due diligence needs to take place before we will be positioned to invest. A business plan is the most efficient way to get all the issues out on the table, so you should expect to have one completed prior to the end of our due diligence. However, don't spend weeks at the keyboard before you contact us. Often the questions we ask in a first encounter can help focus your efforts in developing a comprehensive set of investor communication tools. As you submit an executive summary or PowerPoint on your company to our firm, please include some information on the following areas:

Concise description of your product or service
Backgrounds of key members of your management team
Market need, market size, and competitive landscape
Selling strategy (channels) and market positioning
Unique and sustainable competitive advantages
5-year financial projections summary including approximate capital requirements

How will Velocity Venture Capital handle the confidential information in my business plan?

We respect confidentiality but it is not our policy, nor the policy of the vast majority of other venture funds, to sign a non-disclosure agreement before a business plan is submitted. Our team reviews over 500 business plans each year. Given our regional focus and the importance of a high standing reputation in the local ecosystem, we will respect the proprietary and confidential nature of the information you provide to us. Most of our team members were entrepreneurs at one time, so we certainly understand the importance of your ideas. Maintaining high ethical standards is a core principle of our firm. As we work to build a major venture franchise for this region, we are building our local and industry reputations with this as the foundation of the organization.

How does the investment decision process work at Velocity Venture Capital?

One of the team members at our firm will be the "deal lead" as we review and analyze your company. Once we have reviewed your information, you will receive a response from the firm. If we are interested in learning more, we will typically schedule a call or a meeting with key members of your management team and/or Board. Assuming the call or meeting goes well, you will be invited to present to our Investment Committee. This team will quickly get back to you with key issues that require resolution prior to investment, or the key reasons why we are unable to invest in your company. The time line from initial contact with our firm to funding can take as little as 60 days or as long as 6 months.

Our intentions are to be candid, professional, and respectful during the due diligence process--we don't want to waste your time or ours. If your company fits with our portfolio, we will finalize the terms of investment and quickly begin working together with you to build a valuable company. If not, our hope is to provide some value or guidance on the areas that we believe are critical to your success. From a regional perspective, we want every local company to become successful--whether we invest or not.

Who are Velocity Venture Capital's investors?

The initial investors of Velocity Venture Capital include entrepreneurs, angel investors, corporate technology executives, and real estate developers. We plan to grow our venture franchise through capital commitments from large capital sources like state pension funds and other institutional capital sources that actively invest in venture funds.