Comments on: How Do You Reference Check a VC?

By: BIEB Mobile Sources

BIEB Mobile Sources — Tue, 02 Mar 2010 22:29:10 +0000

Why Investors Should Never Bet Against Founders, Even If They Want To Sell Before You Do…

I was going to save this post for a while but the “ Patzer Problem ” meme has forced my hand…

By: BIEB Volume Sources

BIEB Volume Sources — Tue, 02 Mar 2010 22:13:05 +0000

Why Investors Should Never Bet Against Founders, Even If They Want To Sell Before You Do…

I was going to save this post for a while but the “ Patzer Problem ” meme has forced my hand…

By: BIEB News Sources

BIEB News Sources — Tue, 02 Mar 2010 20:55:55 +0000

Why Investors Should Never Bet Against Founders, Even If They Want To Sell Before You Do…

I was going to save this post for a while but the “ Patzer Problem ” meme has forced my hand…

By: The Entrepreneur Thesis | CloudAve

The Entrepreneur Thesis | CloudAve — Mon, 01 Mar 2010 14:35:51 +0000

[...] • Outsized returns through sharp elbows – OK, here is what it boils down to. I really believe that some firms have the strategy of edging out the entrepreneurs, bringing in a new management team, recapitalizing the company, minimizing the founders’ share and taking maximum ownership for the VCs. This is dreadful behavior but I truly believe that some firms go into investments with this mindset. I’ve heard very similar stories in the VC corridors. ”Well, we’ll just do their next round and take 50% of the company. They’re struggling to raise funds anyways.” Look – it does happen. And sometimes it is warranted. I just don’t believe that any VC should go in with this strategy. It’s why I always tell entrepreneurs to reference check their VCs. [...]

By: How Do You Reference Check a VC? | CloudAve

How Do You Reference Check a VC? | CloudAve — Mon, 15 Feb 2010 11:22:13 +0000

[...] reference checking.(Reference-checked Cross-posted @ Both Sides of the Table) Posted Under : Entrepreneurship Tags startups entrepreneurship Start-up Advice Startup Advice [...]

By: Giang Biscan

Giang Biscan — Wed, 10 Feb 2010 14:20:52 +0000

Thank you, Mark.

By: Giang Biscan

Giang Biscan — Wed, 10 Feb 2010 14:20:52 +0000

Thank you, Mark.

By: Giang Biscan

Giang Biscan — Wed, 10 Feb 2010 08:20:52 +0000

Thank you, Mark.

By: BerislavLopac

BerislavLopac — Tue, 09 Feb 2010 22:58:35 +0000

There is one important difference between VC funding and marriage: with the former you need to double-check all the clauses when entering, and with the latter when exiting. I'm currently going through a difficult divorce, and once it's over I'm pretty sure I'll be able to handle any VC.

By: msuster

msuster — Tue, 09 Feb 2010 22:54:26 +0000

I think the primary reason you go to a VC is obviously the money. But I really believe that a good VC will help in all the areas you mention - much more so than YCombinator. YCombinator and the equivalents are wonderful programs for the first phase of your company. But companies go through many difficult phases and you need VCs there at each phase. We deal with issues like:
- recruiting
- founder disputes
- raising debt to fund working capital or receivables
- whether to merge / acquire companies
- raising a larger round of VC
- selling your company
- access to senior industry leaders

and much more. A good VC will reference well in all of these categories. You just want to talk with other CEOs and assess how useful the individual was in these categories. How prepared were they for board meetings? How useful were they at board meetings? How available were they for help when it was needed? etc.

Good luck.