How Does the Entrepreneur-VC Relationship Impact Fundraising?

What are the most important things for entrepreneurs to remember when fundraising?

As David Hornik of August Capital puts it in this short video, “if you don’t like him, don’t take his money.” This is a short-but-direct summary of the most important consideration when selecting a VC to work with: it’s all about the relationship. If you don’t agree with the way your VC will interact with your company, do not start an indefinite partnership with them.

Hornik describes his approach as helpful-but-removed. If you’re looking for a VC that will be more involved and authoritarian, says Hornik, then choose appropriately. In the end, both entrepreneur and VC will suffer if they can’t co-exist. This goes to show that some things as important as the money when it comes to fundraising.

For more on entrepreneur-VC relationships in fundraising, watch the video above featuring Hornik.