Does Lateral Capital Lead Investment Rounds?
No. We are minority investors and we look to invest alongside Angel/Accelerator/Industry groups across the U.S. We look at the deal they have negotiated and either “take it or leave it.” We either invest in the LLC put together by the group as a way to “collect” multiple small investments or we invest on a stand-alone basis, on the same terms.
In most cases, we look to sign side letters with the company which gives us specific rights that may not be important for traditional Angel funds or other groups where we are affiliated. These could include issues which are not addressed in the investment agreement, including:
- The company’s commitment to provide information on company progress, on a quarterly basis.
- Follow-along or drag-along rights.
- Rights to “inspect” or audit the company’s books, should an issue occur.