Business Law Firms

I have met with private equity firms, angel investor groups, and venture capitalists all over the nation about tying into private equity investments in Indianapolis – primarily with SaaS businesses.  I am always amazed by the cultural differences of investors in different areas of the country.

In Indianapolis, for instance, investors typically want to consider investment opportuntities by looking at aspects of the business plan in the following order: (1) Management Team; (2) Market Opportunity, and then (3) Investment Opportunity.  Maybe this is traditional Midwest relational values, but first and foremost, investors want to know who is involved.  Ultimately the investor wants to know that he trusts that the individuals can carry out the businss plan before considering the business plan itself and the investment deal. 

In California, on the other hand, this is flipped on its head.  Investors typically want to see (1) Investment Opportunity, (2) Market Opportunity, and then (3) Management Team.  Before you go into anything related to the opportunity or the ability of the team to carry it out, let’s talk about the deal.  What is the expected return?  What is the exit strategy? 

Note that in both cultures, all three elements have to exist.  You have to prove that the market has a business opportunity that can be met by this business, that this team can be trusted to carry out a plan, and that success on meeting this opportunity will provide a return to the investor that is significant enough for them to take the risk of making the investment.



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Alerding Castor Hewitt, LLP is an Indianapolis law firm focusing on business law, information technology law (including SaaS law and legal technology consulting), private equity consulting, probate and business litigation.