Raising Venture Capital: Make Sure Your VC Has Time for You
July 27, 2010
I was reading the Wall Street Journal last week and came across an article in the small business section titled “Start-Ups Grumble About Directors Too Busy Too Help” which I wanted share with you.
As a founder and/or CEO of an early or expansion stage company looking for investors to provide growth capital — to build out your management team and scale your company — there are criteria to consider beyond the capital. Things like;
- Venture firm focus
- Partner experience
- Deal Terms
- Alignment with your vision for the company
And the list goes on and on.
But one area many founders and CEOs often overlook when raising venture capital is does my potential partner really have the time to spend helping us grow a great business so you reach a successful exit. Or if things get tough, will they still be there by our side, helping us right the ship.
At OpenView not only are we committed to being engaged as a board member (we attend in person and our phones and blackberries are turned off and in our bags), but also as an active advisor to the CEO and his management team — leveraging not just our operational software industry experience, but also OpenView Labs and its business development strategies (you can check out some of there case studies here).
So remember, if you decide to raise venture capital… make sure that they bring more than money to the table and have the time to actually help you realize your dreams!
All the best!