Check Your VC’s References—or Risk a Bad Romance

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An entrepreneur’s relationship with their VC is like a marriage. And while I’d never suggest checking a potential spouse’s “references,” when your company is on the brink of a serious investment, it most certainly does need to check the VC’s references.

Mark Suster contends that skipping a reference check can make an unhappy marriage even worse:

“And worse still, your VC will have certain controls in the company that don’t make it simply a matter of a “wasted opportunity.”  They’ll likely be influential in future financings, in major economic decisions, in executive hiring / firing, annual business plans & ultimately in M&A discussions.”

There are 3 steps to checking a VC’s references:

  1. Get a list from them
  2. Don’t stop at that list
  3. Focus on the companies who went through rough times

For tips on how to implement this strategy, read the rest of the post on Both Sides of the Table.

Full StoryFrom Both Sides of the Table

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