Follow-on Investing
April 29, 2015 by FundingSage -
- (follow-up investing) This word refers to the event whereby investors reinvest in a company sometime during its development. Often times, follow-on investments occur when a company is not performing successfully as planned. Angel capitalists tend to avoid follow-on investments within the same company because of the high risk of additional monetary loss.4
- A subsequent investment made by an investor who has made a previous investment in the company, generally a later stage investment in comparison to the initial investment.5