Hiring your VC

Not many startups can afford to hire a VC (Venture Capitalist) in the launching phase of the business, but if and when that should change, how do you go about finding the right one?

The relationship is directly influenced by the terms.

  • These terms will establish the valuation and the deal that you strike. Often times these terms get 100% of the focus. Realize there will inevitably be strings that accompany the money.

A VC will exert significant influence in your company.

  • This could become challenging to you and your co-founders if the VC doesn’t have an intimate knowledge of your company and how it works. This can become even more complicated if your business should grow and you end up hiring more VC’s -- now multiple people have a stake in your business and will behave accordingly.

Experienced operators are the best VC’s to collaborate with.

  • The best way to choose a VC is to ask yourself: who are you going to have the best working relationship with, in addition to getting the terms that are necessary for your business? A VC who has had previous experience as a CEO will best understand your circumstances and challenges and therefore be someone that is easier to collaborate with.