Forum Ventures (@forumventures): "When to reject a VC: When there’s a lack of transparency. Complicated deal terms with hidden provisions that could give up control are not worth the money. You might get a big cheque now, but become a red flag to future VCs and never raise anything again. When there’s a …"

When to reject a VC:

When there’s a lack of transparency. Complicated deal terms with hidden provisions that could give up control are not worth the money. You might get a big cheque now, but become a red flag to future VCs and never raise anything again.
When there’s a lack of partnership. For modern early stage companies, having a strong network is more important than ever. You want a VC that brings value beyond capital and treats you as a mutual partner.
When there’s application or consultancy fees even before the investment. A lot of founders struggle with fundraising and feel pressured to accept any offer; but sometimes an investment could do more harm than good. The best VCs provide value first (capital, support, etc) and get equity in exchange. If a VC asks you to pay additional fees or equity before they even prove themselves and their commitment, do they even really want to invest or do they just want to make free cash/equity?

Founder, vet your VCs just like they vet you. Otherwise, your next VC cheque could be the last one your startup will ever be able to get.

Mar 27

2:32 PM