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Selecting a VC Partner, | The Accelerator Group

Value Creation & the right VC Partner

Early stage companies need to demonstrate real success & momentum, on a smaller scale, before attempting to secure significant VC funding.  With that said, CEO’s of early stage companies should immediately begin to understand the VC landscape and identify potential partners.  Do your homework to understand their sweet spot – industry/technology focus and track record, as well as their overall style and philosophy.  Each individual Partner also brings a unique dimension to the table…….. consider this a long term strategic relationship and not strictly a funding source! 

Share your story & vision with those VC’s  that made it through your initial filter – keep it simple.  Ask for advice and begin to discuss their willingness to invest in a relationship with you and your company, as you build momentum in the market.  Explore creative ways (ie. Seed capital) to get their active involvement and counsel.  There is no substitute for this since, most early stage businesses require constant adjustment in the team, business model, market focus, sales model…etc before they lock down for sustainable growth.  The ‘right’ VC Partner will be invaluable with you in value creation of your business…..remember all money is not created equal!

 

Related Stories & links:  

Who are the best Venture Capitalists? Pure Investors or Operators?

by Michael Skok, General Partner at North Bridge Venture Partners

Also see his Start Up Secrets in conjunction with Harvard Innovation Lab

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Fast Company article  Investors – Whose Money to Take  and Whose Money to Turn Down

by Alexa von Tobel, CEO of LearnVest.com

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7 Lessons for Fruitful Fundraising

by Michael Lazerow,  Investor & former CEO of Buddy Media (acquired by Salesforce.com)