Tips on Choosing the Right VC

by Inc.

What’s potentially more important than any hire you’ll ever make? Choosing the right VC.

choosing the right vc

Karl Stark and Bill Stewart, co-founders of Avondale, recently spoke with David Steinberg, a partner at PureTech Ventures, about choosing the right VC. PureTech “builds a company from scratch with its own seed capital and sweat equity” and “focuses exclusively in the life sciences arena,” which gives the firm a unique perspective.

Steinberg says that “if all you need is $150,000 or $200,000, you should really look to cobble that together through angel investors” rather than VCs, and “your goal should be to raise as little as possible to put together a proof of concept before you go to a larger investor such as a traditional VC.”

If your company has reached expansion stage, and angel investment won’t cut it, Steinberg says that it’s “easier to work with a VC that’s in your neighborhood, but most of the big VCs are in Silicon Valley, Boston, or New York.” When choosing the right VC, Steinberg recommends focusing on funds that have experience in your industry and have fund managers with personalities that mesh well with your own.