How to Raise Venture Capital with Liz Keehner

On this episode of the Iowa Tech Podcast, we welcome Liz Keehner from Next Level Ventures to discuss her journey and insights into the venture capital (VC) industry. Liz shares her background, starting from her upbringing in Iowa, education in finance and entrepreneurship, and her venture capital experience in Austin, Texas, before returning to Iowa. She highlights her roles at VentureNet and Ag Ventures Alliance, leading to her current position as Vice President at Next Level Ventures, where she manages investments in Iowa-based technology companies.

Liz emphasizes the importance of team, market opportunity, and product timing when evaluating potential investments. She explains that the feedback loop in venture capital can be challenging due to the long-term nature of returns, often up to ten years. Despite the risks, Liz finds the relationship-building aspect and the curiosity required for the job highly rewarding. She advises founders to be honest about their knowledge gaps during pitches and highlights the significance of having educated assumptions based on market research.

The due diligence process, as described by Liz, involves thorough research on the company, including team background, financials, market research, and technology. She advises founders to prepare a comprehensive data room with all necessary documents and be ready for follow-up calls to discuss financial projections and technological aspects. Liz also notes that lead investors set the terms of the deal, which follow-on investors adhere to, and emphasizes the importance of building relationships with investors who can add value beyond just financial support.

Looking ahead, Liz discusses her new role at Next Level Ventures, where she will lead the investment team and focus on launching a third Iowa-focused venture fund. This fund will prioritize investments in agriculture, bioscience, and climate-related sectors, areas where Iowa has a competitive advantage.