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June 27, 2006

Comments

Excellent article. Thanks.

One of the thing that makes it difficult for entrepreneurs to look under the hood is that the balance of power usually seems very asymetrical. Most startup founders raising VC money do not feel they have enough power in the relationship to do as much due diligence as they likely should.

First off, Rick, that's mighty good typing for a Blackberry. I say "two thumbs up to you." Second, in my years of working with startups, before, during and after their first venture rounds, I don't think you can overlook chemistry. I have seen too many entrepreneurs feel burdened by their relationships with their boards. I have had too many VCs take me aside and tell me how they are counting on me to provide adult supervision to "these kids." My cheap advice: (1) Don't take money from people who make you uncomfortable. (2) Don't give anything more than pocket change to teams you consider to be"kids."

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