Alex Rosen is a partner at IDG Venturs, an early-stage venture capital firm. In this interview, you can learn about Rosen's and IDG's investment philosophy. IDG typically looks at 700 tp 800 start-ups a year and invests between four and 10. These figures are similar to the more established firms (e.g. Morgenthaler has five VC partners and invests in about 10 a year across its partners). IDG places about $1 million to $5 million to work in a Series A or B round, though at times IDG will make seed rounds. The average investment amount has been $3 million, with reserves for follow-on rounds.
Even though most VCs like to take roughly a 20% stake in a company when they invest, IDG doesn't have a hard and fast rule about it. The average percentage in a company is 16%, said Rosen, adding the firm takes as low as 5% to 6% and as high as upper 20%.
Don't forget to check out Alex's top 10 reasons raising capital is optimal right now.