Do VCs Really Add Value

first_imgLately, many of the companies I have spoken to about raising growth equity have questioned the true value we provide.A few of the management teams have been burned by previous investors who claimed to provide value, but did little for their equity. There are some basic questions you can ask upfront to avoid this outcome.1- ask for tangible and recent examples of how the investor helped a company. Ask for specifics. If they said they helped hiring the management team, ask them how they found them and when? 2- ask for references. Ask to speak to 3 CEOs before you even sign a term sheet. 3- ask how many boards the investor sits on today and how many he/she expects to sit on. 4- ask them how they would help you in the next 30, 90 and 120 days. If they say they will help with hiring, ask them to point to specific candidates. Even better, ask them to make an introduction pre-investment.The notion that VCs do very little post investment to help is certainly supported by a select small group of either lazy or rich venture capitalists. I have worked on both sides of the table and can say I have seen both scenarios. The best way to figure this out is to test them early on how they can/will be supportive.AddThis Sharing ButtonsShare to FacebookFacebookShare to TwitterTwitterShare to PrintPrintShare to EmailEmailShare to MoreAddThislast_img

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