Value Creation & the right VC PartnerPosted by Chet on Mar 18, 2013 in Featured, Transformation, Value Propositions | 0 comments
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:
by Michael Skok, General Partner at North Bridge Venture Partners
Also see his Start Up Secrets in conjunction with Harvard Innovation Lab
Fast Company article Investors – Whose Money to Take and Whose Money to Turn Down
by Alexa von Tobel, CEO of LearnVest.com
by Michael Lazerow, Investor & former CEO of Buddy Media (acquired by Salesforce.com)