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Thread: Taking money for a startup is a big commitment, its a commitment to spend years building something & its a commitment to spend that time working closely w/ a VC you likely met recently. How do you make a smart decision?
11 questions to ask
https://labyrinth.substack.com/p/11-questions-every-founder-should
11 questions to ask
https://labyrinth.substack.com/p/11-questions-every-founder-should
1) Can you show me the deck you share with prospective LPs for your fund?
2) Please share a list of founder references. Preferably founders you’ve worked with who have been successful and founders you’ve worked with who ultimately failed?
2) Please share a list of founder references. Preferably founders you’ve worked with who have been successful and founders you’ve worked with who ultimately failed?
3) Who are your LPs? Where does your money come from?
4) Who is a founder that doesn’t like you and your firm and why?
5) Have you ever made a decision that was financially good for your firm and LPs but not the founder? Why? How did you make the decision?
4) Who is a founder that doesn’t like you and your firm and why?
5) Have you ever made a decision that was financially good for your firm and LPs but not the founder? Why? How did you make the decision?
6) What types of signals do you read as a time to replace a founder as CEO?
7) How do you support your companies? Name a time when you think you made a real difference for a portfolio company or founder?
8) What is your thesis on our industry?
7) How do you support your companies? Name a time when you think you made a real difference for a portfolio company or founder?
8) What is your thesis on our industry?
9) How do you like to work together? What cadence of communication? Official meetings or just pinging whenever its necessary?
10) What is your policy on follow-on investing?
10) What is your policy on follow-on investing?
11) How long have you been at the firm? What would draw you away from your current firm? Have you left a firm before? Why? How do you relate to the founders you backed after you left that firm?
The rationale for each question here: https://labyrinth.substack.com/p/11-questions-every-founder-should
The rationale for each question here: https://labyrinth.substack.com/p/11-questions-every-founder-should
