Together, a company and its venture capital backers should make a strong, unified team
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Much has been written about how to secure venture capital funding, but far less about whether a founder should sign a term sheet and say ‘yes’.
Like all industries, there are great funds, good funds, average funds – you get the idea.
For founders thinking about whether to accept an offer from a fund, here are five key questions they should ask themselves.
Do you like them?
The world of finance has a cut-throat reputation, but early-stage venture capital is very different. As a founder, the decision to take investment from a fund is one of the biggest you will make and sets up a relationship that will last for many years.
Asking whether you like the people who are about to become a significant part of your life is entirely valid. This is not naive, but sound business judgment – relationships based on trust, mutual respect, and shared…