search: results update below


browse funds: selections are stored



recently rated:

Rated by 27
3.3

top rated funds:

Rated by 12
4.5

Rated by 22
4.4

Rated by 11
4.2
 

Rated by 19
4.1

Rated by 39
4.0

Rated by 10
3.9

Rated by 30
3.9

Rated by 30
3.9

Rated by 63
3.8

Rated by 11
3.8

Rated by 43
3.8

Rated by 27
3.7

Rated by 105
3.7

Rated by 31
3.7

Rated by 11
3.6

Rated by 20
3.6

Rated by 16
3.6

Rated by 10
3.6
 

Rated by 62
3.6

Rated by 10
3.6

Rated by 20
3.5

Rated by 12
3.5
 

Rated by 18
3.4

Rated by 19
3.4

Rated by 14
3.4
 

Rated by 48
3.4
 

Rated by 31
3.4

Rated by 16
3.4
 

Rated by 11
3.4

Rated by 10
3.4

Please take a moment and make a financial contribution to TheFunded. If we have helped you, help us with resources to further grow the both the site and our entrepreneur training program, The Founder Institute.

Member Post

TheFunded.com is an online community of over 18,000 CEOs, Founders and entrepreneurs to discuss fundraising, rate and review investors, and discuss strategies to grow a start-up business. Enjoy!

Sign-up for Membership

1
Agree
0
Disagree

Don't Compromise on Your Investor Selection (Period)

TheFunded.com Advice

Posted by SevenTimer on 2007-07-14

Tags: Preparation Targets

PUBLIC:

When you are in the thick of fundraising, you'll likely get put into a position where it is tempting to compromise and accept a term sheet from a less-than-desirable fund or a fund that you have some hesitations with. Hey, you just want to get back to running the business. Maybe the fund makes an attractive offer. Maybe you are burnt out on fundraising. Maybe you need the money. I strongly recommend, from experience: don't compromise on your investor selection.

If you leave a meeting thinking, "what a waste of time," think about having these people waste more of your time as an investor. The questions and insights don't get any better over time, even with domain knowledge. If your gut is telling you that the investor is not that smart, conceited, mean, or devious, they probably are. They will continue these traits when they are on your Board, too. It's not like they switch from "mean pitch mode" to "happy investor mode." The tricky situations are when someone does have their "game face" on in a pitch, so you definitely should do as much research as possible.

I am on my 7th start-up, and I have had a lot of investors. Some are and were horrible. Others are and were great. The one thing that is evident to me now is that, with the exception of one person, the quality of the investor or Board Member is obvious very early on. More importantly, it certainly does not get better, but it may get worse. So, again, don't compromise.

PRIVATE: Members Only