©ALLVP 2019 - All rights reserved

Frequently Asked Questions (FAQs)

Founders Looking For Investment

 

When should you be talking to us?

We invest across early-stage financing rounds and our typical ticket size is between US$1 to 3 mil for Seed and US$3 to 7 mil for Series A and B. This means we do get really busy speaking to amazing founders like you. So here are two things we’ll need you to meet before reaching out:

  1. Company Operations - You must be operating or have operations in at least 1 Latin American country or have plans to expand to Mexico.

  2. Company Pitch Deck

 

How should you be reaching out?

2 ways - Warm Intro or Cold Outreach:

  • Warm Intro - If you are connected to our investors, one of the founders we invested in or to our service providers (lawyers, accountants,...), it helps if you ask them for an intro.

  • Cold Outreach -  We do believe in cold emails, you can reach us via our website, using Allie our chatbot messenger or via the message request form.

 

Amazing! You’ve managed to reach out (regardless warm or cold) and have sent your pitch deck over. What’s Next? 

Wait for us to respond. Our investment team will review your pitch deck and will reply to emails within two working days.

 

If we liked what we saw from your Pitch Deck, you’ll expect an email from us requesting for a video call or in-person meeting, which are typically 30 mins. If we reviewed your Pitch Deck and our interest was not piqued due to various reasons, you’ll also from us, declining to meet.

 

We make one exception! If you are a Female Founder or Co-Founder that meets our 2 criteria (read above) when reaching out, we’ll definitely be interested to have an initial call with you. 

 

Do we sign NDAs?

No, we do not. And if you’re wondering why, Brad Feld has written a fantastic piece explaining why VCs don't sign NDAs you can read here - https://feld.com/archives/2006/02/why-most-vcs-dont-sign-ndas.html

 

What we Invest in

 

Does ALLVP only invest in particular areas or industries?

Our investments tend to cluster around Healthcare, Fintech, Consumer Internet and Smart Cities, but our interest does not end there. We are always looking for the next disruptor or enabler for the Latin American market and if you are building something different for this region, we’ll like to speak with you.

 

Do we invest out of Latin America?

We tend to focus exclusively on companies based in Latin America because that is where our expertise lies and where we can be your most valuable partners. We also invest in companies headquartered in the US or Spain that have operations located in Latin America, are built for the Latin American market or have plans to launch in Latin America.

 

Do we have a preference type in Founders when investing?

No, we do not. And we are proud to invest in a diverse group of founders from various career backgrounds, age and have kept our male to female founders ratio 50 to 50. We tend to shy away from solo and first-time founders. We believe more in Teams, where co-founders bring different expertise and value to the business and seasoned entrepreneurs with domain expertise in building their business.

 

Our Investment Process

 

How long does it take before ALLVP decides to invest?

We do not have a hard and fast rule to how long we’ll take before making an investment decision. Each investment is different and is parallel to the pace of founder seeking investment, length of time to build our conviction and relationship with the founders. The time taken for past investment decisions we’ve made has ranged from as fast as 6 weeks to 20 weeks.

 

How many meetings are there during the Investment Process?

We have kept the number of meetings consistent and necessary, typically at least 3 in-person meetings, before making our investment decisions. Read on for a lengthier description of each meeting.

 

1. First Meeting (Investment team)  - Duration of this meeting is typically between 30 to 45 minutes, either in-person or a video call. This first meeting helps us establish a better understanding of your business and whether it fits our investment thesis. *Most of our rejections usually occur after this first meeting via an email from us, with short concise reason(s) why we are passing or for founders to circle back in later on.

 

2. Second Meeting (Partner-level) - A second meeting indicates our interest to learn more. You will meet with either one of our partners, Federico Antoni or Fernando Lelo De Larrea, and our partner will focus on areas of the business we have questions on. This meeting usually last 45 to 60 minutes, preferably an in-person meeting, otherwise a video call.

 

3. Third Meeting (Partner-level) - You will be meeting the second partner at the third meeting, where ALLVP will probe more into the core assumptions of the business. Please come prepared with more specifics about the business. We like to see evidence of traction, projections, cohorts, growth strategy, hiring plan, competitor(s) analysis, etc and your conviction in building the business.

 

 4. Partners and Team Meeting (Founders) - Our Partners will ask for an office visit to your company to meet with the different heads of the business. At this visit, our partners will spend half to a full day at your office to meet with the heads, to hear their stories, motivations, answer questions and evaluate how it’ll be like for us when we invest in the team.

 

What happens between meetings?

The time lapse between your First Meeting with ALLVP to the Second or Third meeting to vary between 1 to 3 weeks. The ALLVP investment team has an internal bi-weekly meeting to review all deals to provide you with a response to our decision.  

 

During this period, our investment team will do a deep dive into your business, requesting for additional information about the business to help us with our analysis work, as well as make reference and diligence call on our own.

 

When do we start asking for more information such as market and business analysis, financial data, projections, etc?

Our investment team will request for more information about your business only after at least one of our partners have spoken or met with you.

 

Four meeting rounds with ALLVP after, what’s next?

You are almost there! One of our partners will reach out offering our term sheet and address the terms of our investment and start the negotiations process. Timeline for you to receive a term sheet varies depending on situations. We have offered term sheet right after the last meeting, within 24 hours after meeting or have taken up 2 to 3 days max to offer you a term sheet.

 

During the negotiation process of investment terms, please also expect external rounds of due diligence happening to comply with our legal and finance requirements.

 

When does ALLVP say No?

In ALLVP, we do say no very often because we value your time and are as transparent as possible during the whole process. We say no as early as from declining to meet, after the first meeting, or after following meetings.

 

A no from us today does not mean an absolute no for us in the future, and yes we seek to keep the conversation and build the relationship.

 

What kind of investor is ALLVP?

 

What it's like to work with us?

If we are investing in you pre-Series A round, we’ll only be taking a board observer role first. For Series A rounds onwards, we like to be the lead investor and take a board seat and co-invests with strategic investors, corporate, international and top-tier funds.

 

We like being active in helping you build your company and connecting you to our network across Latin America. As your company grows, you’ll need to manage the size of your board. We’ll be happy to give up to new investors in later rounds, which we know entrepreneurs do appreciate.

 

Other than board meetings, what do you expect from ALLVP?

We make sure we get facetime with our founders every 2 to 4 weeks where we roll up our sleeves to help them solve their existing challenges, advice on the fundraising process, make intros to potential strategic partners/alliances, source and recruit talents, provide strategic problem solving, and even bringing in industry experts and specialist to inspire and assist.

 

We are very hands-on, and as Federico Antoni puts it in his article titled “Tough love” on what to expect with partnering with ALLVP, know that we are an intense yet caring bunch.

 

What are our efforts in building and developing this ecosystem?

Our Partners are dedicated to continually give back through mentoring, coaching entrepreneurs and providing educational resources to equip aspiring entrepreneurs. ALLVP launched Numa Camp, the first entrepreneurship and innovation course designed for high school students. Our partners have co-instructed classes together at ITAM (Instituto Tecnológico Autónomo de México) and Fernando still teaches the evening class on Entrepreneurship Development in ITAM, since 2001.

 

ALLVP organizes quarterly VC101 workshops for Latam entrepreneurs to share insights on startup and industry trends happening in Latam, Venture Capital investment terms and our Partners travel around the Latam region extensively to participate in conference panels and meet with the tech ecosystem community.

 

On a Corporate and National level, ALLVP has been building and maintaining a close relationship with corporations in Mexico. We have launched several educational programs on Innovation for corporations and has been invited to conduct Corporate Venture 101 workshops in many corporations.

 

What is ALLVP’s Anti-Discrimination and Anti-Harassment Policy?

ALLVP is committed to a safe work environment in which no member of our startup community is discriminated against on the basis of sexual orientation, race, religion, age, nationality, gender identity, socioeconomic status or any other characteristic protected by applicable law. We will promptly take appropriate remedial action to address any form of harassment or discrimination that is brought to our attention. ALLVP is aligned with the Kauffman Stewardship pledge and acts according to the principles. We recognize that our behaviour must set an example of integrity and mutual respect, eliciting trust and esteem from the multiple stakeholders we serve. We will remain accountable to our peers and to society for our actions and uphold these standards.

 

What is ALLVP stance on diversity and inclusion?

At ALLVP, we are committed to increasing the diversity of our ecosystem and our team. We are constantly finding ways to engage, expand and source for a diverse community to build an all-inclusive community. We work hard to make diversity and inclusion as the core of ALLVP ethos.


 

Our FAQ list is a work in progress and we will update it whenever we have more answers to include. If you have more questions for us, please feel free to send us a message.

 

 

Last updated 14 March 2019