What First-Time Founders Must Remember When Working With Venture Capitalists

As a founder, one of the most critical decisions you’ll make is choosing the right venture capitalist (VC) for your startup. This decision can be likened to finding the right spouse – it’s about building a long-term partnership that will support and guide you through the ups and downs of entrepreneurship.

In this article, I’ll share my personal experiences as a founder who has navigated the world of venture capital, and provide advice on how to choose the right VC for your startup. From choosing someone who can help with blind spots to thinking beyond the check, I’ll cover everything you need to know to make informed decisions about your startup’s financing.

Table of Contents

Why Choosing the Right VC Matters

As a founder, you’re not just looking for a VC to write a check – you’re seeking a partner who will help you grow and succeed. A great VC will ask the right questions, challenge your assumptions, and provide guidance when needed. They should also be a shock absorber for bad news, helping you navigate challenging times.

A good founder-VC relationship is built on trust, partnership, and communication. It’s nonjudgmental, supportive, and constructive – much like a healthy marriage. When choosing a VC, look for someone who has empathy and curiosity, and who will ask questions that challenge your thinking.

Choose Someone Who Can Help with Your Blind Spots

As a founder, it’s easy to get bogged down in the details of running a startup. You’re so focused on product development, marketing, and operations that you may neglect other important areas like fundraising or strategic partnerships.

That’s where a VC can be incredibly valuable. They have the advantage of not being as embedded in your startup’s technical and operational details, which allows them to see potential obstacles and issues that you may not currently be focused on.

For example, my team and I were so focused on building our product experience that we neglected marketing and partnerships. It wasn’t until an investor pointed out this blind spot that we started putting time and energy into strengthening our relationships with key partners like Apple and Google.

Think Beyond the Check

When choosing a VC, don’t just look at their track record of investments or their portfolio companies. Think about what else they can offer your startup – access to their network, guidance on complex issues, and help in navigating challenging times.

A good VC should push you on tough questions like "Are there people who have done this before?" or "What potential pitfalls are you not seeing?" They should also challenge your assumptions and encourage you to think critically about your business.

In Conclusion

As a founder, I wish I had worked harder to deepen my relationships with my VCs earlier. It wasn’t until I began asking for help and advice that things started to click for my startup.

If you’re a first-time founder, don’t be afraid to ask for help – it’s okay not to have all the answers. Choose a VC who is invested in your success, and who will challenge you to think critically about your business. With the right partner by your side, you’ll be well on your way to building a successful startup.