Cervin Ventures

 

WHY US

Cervin Ventures is a seed and early stage venture firm, focusing solely on opportunities in the B2B software space. Why should entrepreneurs come to Cervin Ventures to seek their first investment partner?

Here is our Top 10 list:

  1. It is all about the people!
  2. The Network
  3. Operating Experience
  4. Do they get it? Do they understand the domain and market the startup is playing in?
  5. Alignment of goals with founders -- includes potential future funding options, exit options, and when things go pear shaped
  6. Do they care? Do they have time to spend with the entrepreneurs and the company? How many Boards are they on?
  7. Quick decision-making
  8. Scalable
  9. Standard, simple, fair terms
  10. Focus on early stage


1. It is all about the people!
The alignment between Founders and investors is critical to the success of a business. We invest in Founders who have a deep understanding of their area and a dogged determination to make their company successful. Entrepreneurs, above all, would like to work with an investment partner that is fair, honest and approachable. We relate to your desire to ‘change the world’. We help you in your quest to build a sustainable business and collaborate with you in order that you have flexibility to build a business and have flexible exit options.
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2. The Network
Entrepreneurs value their investor's rolodex. This includes access to available talent and firms with whom partnerships could catapult a company into a different orbit. The partners at Cervin Ventures have been in the technology industry for over 2 decades. They have been successful entrepreneurs and executives. Over the last 20 years, they have built up an extensive network of start-up and corporate executives, technical talent, venture capital firms, and investment banks.
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3. Operating Experience
One of the pet peeves of most entrepreneurs is that they would like to deal with someone who has been in their shoes before. They don't feel that a career banker or corporate executive really "gets" what being an entrepreneur is all about. The team behind Cervin Ventures consists of ex-entrepreneurs. We have seen success and failure (luckily more success than failure), but fully understand the sacrifices an entrepreneur must make, the highs and the lows that are part of start-up life and the flexibility that is needed to make a business successful. We see ourselves as involved venture capitalists, more of a hunker down approach with a few companies rather than "spray and pray" across a large portfolio of companies.

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4. Do they get it? Do they understand the domain and market the startup is playing in?
Domain knowledge and market familiarity are very important to entrepreneurs. We are focused and understand B2B software and services. This allows us to leverage best practices across various areas e.g. how to build a strong inside sales team to sell SaaS, how can freemium augment a business model, or how to leverage “big brother alliances” in a world where the power of platforms such as Apple, Google, Amazon, and Facebook continues to grow.

Any B2C plan will not be considered.
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5. Alignment of goals with founders -- includes potential future funding options, exit options, when things go pear shaped
A key concern for entrepreneurs is whether the venture capital firm is on the same "wave-length" as the Founders. This includes issues such as the right timing of future funding, capital efficiency vs. investing in growth, and exit options. Cervin Ventures’ interests are completely aligned with the Founders since we join the business at such an early stage. We like to think of ourselves as advisors to Founders and always have open channels of communications. A good relationship is key, and helps immeasurably, especially during tough times. Also, since Cervin Ventures tends to invest very early on, we tend to be open to early exit options, an option that does not work for traditional VCs.
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6. Do they care? Do they have time to spend with the entrepreneurs and the company? How many Boards are they on?
Most entrepreneurs look forward to working with value added investors. Both Preetish and Neeraj work very closely with all their companies. We plan to limit the number of investments in the current fund to no more than 10-12 companies. Therefore, we have more than enough bandwidth to spend with each and every one of our portfolio companies.
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7. Quick decision-making
Cervin Ventures has a simple motto when it comes to deal flow and deciding which companies to invest in - "No Long No's". This means that we will reach a quick decision as to whether or not we intend to invest in a company. If something about the company does not fit in our portfolio, we will let the Founders know immediately. Only if we are serious will we have follow on meetings. At every point, we try to be realistic and honest with the Founders.
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8. Scalable
Founders would like to work with investors who have deep pockets which means that they can "go back to the well" for future monies. Cervin Ventures is a small fund that helps Founders develop early stage businesses in a capital efficient manner. We are aligned with a network of growth capital VCs to enable future rounds of capital. We also keep "dry powder" to invest in companies in future rounds in case the need arises.
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9. Standard, simple, fair terms
Cervin Ventures has a simple term sheet template. The terms are straightforward and easy to understand.
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10. Focus on early stage
Many venture capitalists state that they invest in early stage deals, wherein actually they don't. Their fund sizes and partner time do not allow them to do so. Cervin Ventures ONLY invests in early stage deals. We are looking for "passionate Founders with a powerpoint" or "two guys in a garage". The earlier, the better.
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