So finally, how do you know if your VC will stick by you in good times or bad? How do you know if they’ll intervene in a positive way in conflict? How can you tell if they really are good at intros and follow through on what they say they’re going to do.
The best way – of course – is to reference check. Here’s how you reference check a VC (link to post with longer version)
- look at their portfolio list
- subtract out the super, crazy successful companies. a) they have no time for you & b) everybody who has a super successful out-of-the-gate company loves their VC because there was no conflict.
- call the companies that are doing well but not yet household names. Ask about the criteria above.
- more importantly, call the companies that struggled. You’ll learn most about VCs when you find out how they handled themselves in tough situations. Make sure to call 3-4 members of the management team to avoid one person’s bias
The list of criteria to pay attention to is great, very useful. If your business does require you to take investment from VCs, this is a very helpful article
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