Accepting VC funding

Vivek Wadhw continued today the serie about VC funding. In the article “Before You Accept VC Funding” Vivek brings up a few interesting questions you should ask yourself before accepting funding. These questions can be summerized to:

1. Besides capital, what does the VC firm bring to the table?
2. Track record. Check the performance of other companies in which they have invested.
3. Deep pockets. Do they have enough in reserve for follow-up rounds of financing?
4. Founder relations. How did they treat the founders of their other companies?
5. Friends in need. Did they stand by their companies when times got rough?
6. Personality/compatibility.
7. Integrity/ethics.
8. Reputation.
9. Commitment. How many other boards is your VC on?

These articles about VC funding is interesting, not only because I might be in the situation where i need it. But also because VC funding play such an important role in the innovation system. It’s risky to enter a venture in its early stages so it is understandable that they have high demands. Other ways to get funding in an early stage is of course Angel investment. I hope to be able to come back to this in a later posting.

~ by Andreas Sigurdsson on August 3, 2006.

One Response to “Accepting VC funding”

  1. Accepting VC funding


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