The Right Entrepreneur for a VC
Posted by Pierre de la Fortune on May 12, 2015 @ 12:01 a.m.
Written by Amanda Frazier
Investor #1, well call him Pete for confidentialitys sake. Pete is from a large venture capital firm in Boston. Theyve been responsible for a growing number of acquisitions, as well as seed stage venture capital deals. Here is what Pete said is his golden rules:
Do I Like You?
Thankfully, Pete liked me and my partner. And..we liked him as well. Basically, Pete put it to me like this: If I dont like you, why would I invest in you? It doesnt matter how good your idea is.
Which leads me to believe as I always have: the relationship is the most important aspect of the deal for a venture capitalist. A relationship includes liking one another, and being able to listen to each other. Which leads me to what Venture Capitalist Pete said was #2
Do You Listen?
Pete said, and I quote, I need to know youll listen to me. I have made more mistakes than you. Let me help you avoid those mistakes with my experience. I dont know about you other Entrepreneurs but Id rather listen to a venture capitalist whos been around the block, then trust what I have yet to experience.
On to Investor #2. Well call him Bob.
Bob took alot more personal approach and wanted to know about our dreams and goals. He also stated its the people that he cares about, the idea is only half of it.
When I asked Bob the Venture Capitalist what mistakes Entrepreneurs make, they were mostly people oriented as well:
First Mistake Entrepreneurs Make
Theyre the wrong person. Again, this goes back to what Pete the Venture Capitalist said. The wrong person consists of someone who you dont like, and who wont listen.
Second Mistake Entrepreneurs Make
They may be the right person, but theyre committed to the wrong people. Bob the Venture Capitalist said youd be amazed at how many Entrepreneurs have their mother in law as their CFO, and their cousin is the CoFounder. Crossing too many family boundaries, is what Bob said. Entrepreneurs need to figure out how to build a real start up team without spending money on salaries.
Its ironic how before I was always taught to focus on the details, and I was never taught that all you had to do was focus on yourself. When really, thats what makes (or breaks) the final decision!
*So just a side note of caution on this this post was written to show Entrepreneurs that a large portion of the deal is really about them. Its still very and just as equally important to have a solid deal & concept, but what these VCs are saying is that even if you have quarks in your plan or background they can work with you if you are the right person.* For more info please visit: http://cashtostart.com/venture-capitalist-want-right-entrepreneurs/
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