Updated · 2 min read
What is an investor's check size, and why it matters
What check size means in venture capital, how it relates to fund size and stage, the difference between check size and sweet spot, and how to use it to pick investors.
An investor's check size is the amount they typically invest in one company in one round. It is one of the fastest ways to tell whether an investor is a fit for your raise.
Check size, range and sweet spot
- Check range is the smallest to largest amount an investor will put into a single round, for example $250K to $2M.
- Sweet spot is the amount they invest most often, for example $1M.
- Lead vs follow. Some investors only lead, and their check size usually reflects that. Others mainly follow, with smaller cheques alongside a lead.
Why check size follows fund size
A fund has to put its capital to work across a portfolio, with money held back for follow-on rounds. A $50M seed fund that wants 30 companies cannot write $10M cheques, and a $1B growth fund cannot spend its time on $250K cheques. That is why fund size, stage and check size move together.
| Investor | Typical stage | Check size |
|---|---|---|
| Angel investor | Pre-seed, seed | Small, individual cheques |
| Pre-seed and seed fund | Pre-seed, seed | Small to mid |
| Series A fund | Series A | Larger, usually leading |
| Growth fund | Series B and later | Large |
How to use check size to pick investors
- Work out your lead check. If you are raising $2M, your lead usually takes a large part of the round. Look for investors whose sweet spot is close to that amount.
- Fill the rest with smaller cheques. Angels and smaller funds can complete the round around the lead.
- Skip mismatches. An investor whose minimum check is larger than your whole round is not a fit, however good the brand.
Check size is shown on Investorsync investor profiles wherever the firm has published it. For the first round, see what is pre-seed funding.
Questions
What does check size mean in venture capital?
Check size is the amount an investor typically invests in a single company in one round, often given as a range plus a sweet spot.
What is an investor's sweet spot?
The sweet spot is the amount an investor invests most often, within their wider check range.
Why does check size matter when fundraising?
It shows whether an investor can lead or join your round. An investor whose typical check is far larger or smaller than your raise is usually not a fit.
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