The right venture firm for you will be one that...

• welcomes individual investors at a dollar level that works for your portfolio

• has a transparent investment thesis and track record

• is led by a team who inspires your confidence

• does not pressure you to invest

• invests and operates in alignment with your values

Ultimately, it's up to you and what your risk tolerance is. An important thing to remember is that no matter how much you invest in venture, firms do not usually ask for this amount all at once.

Financial advisors often recommend investing between 5-10% of funds into alternative investments such as a venture fund. Venture firms have different minimum investment requirements and varying capital call schedules. For example, one firm might have a minimum investment of $25,000 called over four years. That means you would invest $6250 per year on your $25,000 commitment. Other firms may call their capital on an as-needed basis whenever a deal is ready, rather than on a set schedule.

Most venture funds and angel investing vehicles require you to meet U.S. Securities and Exchange Commission (SEC) guidelines to be an Accredited Investor. Full details are available at the SEC website but a rule of thumb is that you must have:

• earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year, OR

• has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), OR

• a Series 7, 65 or 82 license in good standing.

Both of these types of investments focus on purchasing shares in very young companies with potential to become very large. An angel investment is one that you decide to make directly as an individual (or with a consortium of individuals) into the company; the locus of decision-making is you. Fund investments are those in which you join a partnership and submit capital to fund managers, who will make the specific investment decisions on your behalf.

Management fees are amounts (usually around 2% of your total commitment per year) taken from your capital contributions by venture fund managers to cover costs and expenses of managing the fund. These may include staff salaries, legal expenses, payments to other vendors such as accountants, tax professionals, and electronic platform services, and anything else that is needed to maintain operations.

The vast majority of fund profits are realized when shares in a company are sold at the time of an acquisition or IPO. These profits are generally taxed as either short- or long-term capital gains. The fund’s partnership agreement establishes the allocation of taxable income or loss among general and limited partners. The amount of tax you ultimately pay will depend on your individual income level and bracket.

The New Table is a community of women who are saying that now is the time to change the status quo in venture capital. It is a movement to get 10,000 women to invest in venture capital. Not only is investing in venture capital a huge power play for your personal life, but it is also how we change the leadership of corporate America.

1. What is your approach to investing?

2. What is your thesis? Can you tell me how that aligns with values-based investing?

3. How do you help founders succeed?

4. What is the percentage of women on your management team?

5. What is the percentage of portfolio companies who are female-led?

6. How do you approach risk? What are your historical returns?

7. What can I expect for communication from you?

8. What is the capital call schedule?

9. What is the timeline for returns? What happens if their is an early exit?

10. Do you offer continuing investor education? How can I stay involved after I make my investment?

11. What are the expectations from me as an LP?

Check out more questions here!