What should I look out for when evaluating potential investors?

Money is money, so look for someone with good connections and reputation who can help you raise your next round of funding (this is the single best function of a VC, regardless of what expertise they think they bring to the strategy of your business). And look for a good personal fit. I go out to a 3 hour dinner before I take on any new major investor to make sure I can stand to be around them and that they are actually good people.

you type:	you see:
italics	italics
* item 1 * item 2 * item 3	item 1 item 2 item 3
1. item 1 2. item 2 3. item 3	item 1 item 2 item 3
Paragraphs are separated by one or more blank lines: The first paragraph. Another paragraph.	The first paragraph. Another paragraph

What should I look out for when signing a term sheet? (As a business owner - not investor)

Answered by JS Cournoyer – Partner, Real Ventures

Hard to address in a short post. There are so many variables. Send me the term sheet with an exec summary and I'll give you my comments. (more)

Is there value for a startup to try and partner with a bigger company (for greater visibility/distribution)? What should I look out for?

Answered by Mark Ruddock – Founder, INEA Posted in Operations Marketing

I believe there is huge value in doing this ... brand visibility, rapid distribution, revenue growth (using someone else's capital), a potential eventual exit etc. ... just... (more)

I'm looking to hire someone to steer business development for my company -- this will be my third hire and my only sales hire. What should I look for and what should I look...

Answered by Michael Garrity – Founder, CommunityLend Posted in Sales

You are looking for a relentless "doer" willing to buy-in long term to the business. You need them to take up-side in the business versus draining all your cash. When you... (more)

What should startups look out for when negotiating terms with a potential investor?

Answered by Dan Martell – Founder & Investor. Posted in Money

* Asking too much equity for little involvement (ex: 20% for 25K, etc) * Clauses that get the preferred stock or double returns before entrepreneurs, etc. Honestly, Brad F... (more)

What should startups look out for when negotiating terms with a potential investor?

Answered by Ryan Holmes – Founder, Hootsuite Posted in Money

Oh man.. huge question with many circumstances. Talk to good advisors and council, and work towards getting the best deal you can. Someone that has had a successful exit wi... (more)

Sign up for Sprouter