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FAQ's: Digging Into the Details

Whether you’re a founder of a startup or just generally interested in what Arrow Capital does, you may have some questions about our process. In an effort to make important information about Arrow more easily accessible, we have recently updated our FAQ page to provide even more details on how we operate than ever before. Here are some highlights of what we added, which double as a great “behind-the-scenes” to learn more about Arrow Capital and what we do.

One aspect people often wonder about is whether or not a startup can receive funding from another VC in addition to Arrow. The answer is yes! The Arrow Capital team loves to see companies reach their fullest potential, which includes building strong investor bases. This leads us to a second big topic: How does Arrow invest? We use uncapped SAFEs with a 20% discount, which is a very standard method for VCs making early-stage investments. Tying back to the question of receiving funding from multiple VCs, these uncapped SAFEs are extremely founder-friendly and are very amenable to other investors, given that they are so common. Furthermore, a SAFE does not become an equity investment until the company raises a priced round of financing and is a simple, fast way to get a startup their funds without them having to sacrifice much time. If you’re interested in learning even more about SAFEs, head over to our FAQs page where we’ve linked some helpful resources.

After an initial investment, some companies have asked about how we approach future funding. Arrow Capital commits funds through independent decision-making, which means that if after investing in a company, there comes a time that a follow-up investment seems appropriate, we are open to consideration. All situations will lend themselves differently, and conclusions will be made between the portfolio company, the Arrow student partners, and the Bow advising team. 

We recognize that monetary resources are not the only tools that help companies succeed. So, what kinds of non-capital benefits does Arrow Capital provide? Being strongly aligned and connected within the UC community, the Arrow team can unlock doors to a network of campus programs, faculty members, accelerators, and student talent. Whether a startup needs some more external feedback, is looking to test their existing products, or hopes to expand their team, Arrow Capital aims at introducing founders to the outlets they need to boost their visions into realities. The UC ecosystem is full of incredible students and we do our best to help companies with talent sourcing for brilliant people that can offer them valuable ideas and collaboration.

Often times, people wonder how many investments Arrow makes per school year. Our application is open on a continuous basis under the reasoning that we do not put a quota on the number of startups we fund - our goal is to support UC entrepreneurship as much as possible. In making investment decisions, we look at each startup individually and the amount of funding we have completed bears no consequence in our evaluation of any new application. 

Now, last but not least, the timing of our investment process is something that usually sparks curiosity. With the exception of summer and winter breaks when processes will take a bit longer, the Arrow process takes on average 4 to 5 weeks. This timing encompasses from the point of application submission through all evaluation and due diligence. 

For even more information about Arrow Capital’s process, visit our FAQs page. And, feel free to reach out to partners@arrow.capital if you have any specific questions.