5 Things You Need to Know About Venture Capital Firms

Posted 5th December 2016 by Jane Williams

As a start-up looking for funding, every venture capital firm might seem the same, but all money is not created equal. When you present yourself to a venture capitalist, you’re selling to a business. This means you need to get to know their business and what motivates their decision-makers.

We’ve compiled a list of 5 questions you need to ask venture capitalists, to help make your leap of faith less of a free-fall.

1. How are they perceived by other firms? The journey of a start-up is often hard. After the honeymoon period lapses, will they still ‘play nice’?

2. Do they fit with your strategy? You can’t fire them, so it is important that they share your values and expectations and that your wants and needs align.

3. Who at the firm should you connect with? Where the partner is positioned within the firm (for example, their title, role or track record) determines their influence on decision making.

4. Have they previously invested in companies like yours? Venture capitalists will often invest in areas which they have prior expertise in. Do they have expertise in your area?

5. How do they get involved with the companies that they invest in? At what phases do they provide funding? Seed, A, B, C-G?

Read our report to find out the challenges and key factors you need to consider in order to make your business a success.

Tags: business, collaboration, list, microbiome, microbiota, partnership, venture capital