Robin Hood Ventures - Ask An Expert

RE: Confidentiality Policy

Kevin Chu — Tue, 08 Jun 2010 14:58:15 GMT

While we fully respect the sensitive nature of materials entrepreneurs submit to us, since we receive so many business plans our policy is not to sign NDAs (non-disclosure agreements) or confidentiality agreements. Robin Hood prides itself on our practice of the highest respect and care of the confidentiality of all information received, and always aims to treat you as we ourselves wish to be treated. However, you should not, under any circumstance, forward confidential or proprietary information to us.

Confidentiality Policy

Kevin Chu — Tue, 08 Jun 2010 14:58:15 GMT

What is Robin Hood Venture's policy on NDAs and confidentiality agreements?

RE: Funding Cycle

Ellen Weber — Wed, 14 Apr 2010 15:41:08 GMT

Generally, a deal comes in to RHV, and goes through the Screening Committee, which meets once a month. If a deal makes it through screening, the company presents the following week at our monthly member meeting. If there is interest, we form a due diligence team. Due diligence may take one to two months, then a decision is made, and funding is done. So, a deal might take three months. Sometimes, if the members really like a deal and good due diligence has already been done, and we are knowledgeable about hte industry, it might get through in less than three months. We have done some deals in about 6 weeks. Some deals are not ready the first time they come through, and might take about a year before they are ready to be presented, but we will work wiht the company and monitor their milestones during that time.

Funding Cycle

Samantha Sim — Wed, 14 Apr 2010 15:41:08 GMT

How long is a typical Robin Hood funding cycle?

RE: Why the insistence on being within an hour of Philadelphia

Ellen Weber — Wed, 07 Oct 2009 17:50:33 GMT

We like to take a hands-on role with the company. We don't just invest, we want to work with you to help you grow. We've found that becomes difficult to do when companeis are not close by.

Why the insistence on being within an hour of Philadelphia

Ellen Weber — Wed, 07 Oct 2009 17:50:33 GMT

I heard that Robin Hood likes to invest within an hour of Philadelphia. Why? There are lots of good companies outside of Philadelphia.

RE: How much funding do RHV companies receive?

Ellen Weber — Wed, 07 Oct 2009 17:23:55 GMT

Our investments range from $250,000 to $500,000, as part of a $1 to $2M round. Typically, we will work with other angel or venture capital groups to fill out the round. Whatever the dollar amount, our goal is to ensure that you have enough funds to get to a key milestone. You wil find that RHV gives you access to a wonderful group of serial entrepreneurs and investors who are prepared to roll up their sleeves to help make you successful.

How much funding do RHV companies receive?

Ellen Weber — Wed, 07 Oct 2009 17:23:55 GMT

What level of funding do RHV companies receive in general?

RE: How do you choose which companies to fund?

Ellen Weber — Wed, 07 Oct 2009 17:23:24 GMT

We're looking for entrepreneurs who can both envision and create products that solve real problems for their customers. Some of the things we love to see are:
a) a team with only one or two key people missing
b) focus on a specific customer segment with real pain and the ability to pay to make it go away,
c) clear and credible ideas for acquiring customers and generating cash, and
d) a passion for managing expenses and driving revenue
e) strong IP with good scalability

How do you choose which companies to fund?

Ellen Weber — Wed, 07 Oct 2009 17:23:24 GMT

What criteria do you use to choose which companies to fund?

RE: Does Robin Hood require a Board Seat?

Ellen Weber — Mon, 05 Oct 2009 14:57:43 GMT

There are three reasons that we feel strongly about the need for a board seat.

First, we invest in companies because we believe we can add value. Serving on the board is one of the best ways to add value. In earlier stage investment deals, particularly larger ones, the BOD is very active, conducting monthly meetings as well as meeting between BOD meetings as needed. Directors participate in developing the business plan, helping with client contacts, consulting with the CEO, raising debt, making introductions to VCs or strategi partners.

It is critical that you have a “value-added” board and that the investor board members should have industry experience. based on expertise and industry relationships.

Second, having a board seat ensures strong, positive, ongoing communication. It is essential that the company and the investors have a good working relationship, and board participation can enable this relationship.

Third, having a well-structure board is important to the company's growth and attractiveness to VCs, prospective customers, and strategic partners. Best governance practices show that a Board of Directors (BOD) at the angel investment stage typically consists of two company seats, two investor seats, and one independent seat for a total of five Directors.

Does Robin Hood require a Board Seat?

Rob Weber — Mon, 05 Oct 2009 14:57:43 GMT

We have a small board and want to keep it that way.