Funding

How to Assess Your VC Investor

 

Diane Mulcahy provides valuable questions to help discern the compatibility of an investor before accepting funds for your next project. 

In the race to get the check in hand, most entrepreneurs don’t do in-depth due diligence — or any due diligence — on the venture capital (VC) firms they pitch. Founding teams eager to raise capital to grow their companies enter into long-term partnerships with VC firms they don’t know well. It’s a risky strategy that can leave startup CEOs in mis-aligned partnerships with unrealistic expectations.

 

The four questions covered in depth are:

  • What is the VC’s track record?
  • How much money is the VC personally investing?
  • How big is the VC fund?
  • Do you have a list of portfolio company CEOs?

 

Read the full article, Don’t Take Money from VCs Until You’ve Asked 4 Questions, on the Harvard Business Review.

 

Accessing the Innovation Funds

Robyn M. Bolton provides a few inside tips on how to work with resource constraints and the people who control them when you need to access the resources that will fund your innovation.

 

The process of setting annual goals and budgets can be frustrating and even demoralizing for employees and managers alike as their visions and budgets get slashed in each round of management reviews.

This process can be especially painful for Innovators who feel like they are expected to do more with less and, as a result, can’t even try to do anything new or game-changing because they barely have the resources to operate the current business.

Resource constraints are a reality in every organization. The trick is not to give up when you run into them, but to figure out how to work with them and, more importantly, the people who control them.

 

The steps are:

-Acknowledge reality

-Know where there’s flexibility

-Channel your inner Mick Jagger

-Make your case

 

Read the full article, 4 Steps to Get the Resources You Need to Innovate, on LinkedIn.