How Vcs Work
In the past few posts we've looked at various startup situations from an entrepreneur's perspective. In this and the next few posts, we'll take a look at how the people on the other side of the table, namely the venture capitalists work. It is important to get a perspective of how the other side thinks and works if you want to build a mutually beneficial relationship. It is important to recognize that the entrepreneur and the VC are on the same team and have a congruence of goals - namely the building of a successful company. All the happens before investment. As in all partnerships, if the relationship between the VC and the entrepreneur is viewed with suspicion and in an antagonistic manner, the VC-entrepreneur tussles in the board-room will kill the company. Having said that, let us know take a peek behind the curtains at how VC firms operate. In this post, let us get an understanding of the overall VC situation. VC firms collect money from investors and then invest th...