A few more things no one tells you about VC…

from:

http://foundread.com/2007/11/13/a-few-more-things-no-one-tells-you-about-vc/

A few more things no one tells you about VC…

Despite our regular posts on angel investors and coverage of how to pitch, land, and then “deal with” VCs, we still get plenty of recommendations for funding topics we’ve forgotten, neglected, or simply not heard about yet. (Keep ‘em coming!)

Today I got a nudge from Aruni Gunasegaram, of Austin, Texas. Aruni is the founder of Babble Soft, a company she started with her husband to create Web and mobile communication software products that help simplify parents’ lives. (They’re new parents, themselves!)

After reading our post on 7 Steps to Land and Leverage an Angel Investor, Aruni sent us 7 Things No One Ever Tells You About Raising Venture Capital, by Ben Yoskovitz.

A serial entrepreneur who has raised pro-money, Aruni likes Ben’s list. She suggested we share it.

Ben’s ’7 neglected VC Tips’ (in brief):

  1. Signing a term sheet is only step one.
  2. It might not be worth negotiating the finer points of the deal at the term sheet stage.
  3. Due diligence is an “interesting” process. (Ben links to a good explanation from Softbank EIR Furqan Nazeeri, on what to expect in the DD process.)
  4. The paperwork is extremely detailed and extensive.
  5. Most of the deal focuses on negative details.
  6. You pay all the legal bills.
  7. Don’t just focus on [only] how much you’re raising and what chunk of the company you’re giving up.

Ben is also a founder, of Standout Jobs, based in Montreal, Quebec Canada. Read the full text of the list, and more from Ben, on his Instigator Blog. Aruni shares some her own founders’ tips on entrepreMusings.

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