About a week ago I read a post about an entrepreneur who had a really bad experience with the VC who was on his board. Click here to read the story - it is not a pretty one. But there is more to it than just an investor who didn't play nice (wonder what he learned in kindergarten?). Unfortunately many first-timers find this out only by going through the knots-in-the-gut-that-are-way-past-Pepto experiences - hindsight being better than Lasik and all that. I don't know the whole story, but an entrepreneur would do well to exercise some caution.
- First, no one else, absolutely no one else, has the same drive and level of interest in the survival and wellness of your venture as you do. Investors, board members, advisors, partners, customers, even spouse/gf/bf/mom/dad, may genuinely want you to succeed, but their perspectives and stakes are different from yours.
- Go with your gut. If someone rubs you the wrong way, don't take money or advice from them, and most of all, don't put them in any position of influence or control in your company. If your personalities are not in sync, there's no point trying to force fit a match.
- If integrity and fair play are important to you, expect it from everyone who's involved with your company - not just yourself and your team.
- On the same lines, take your time and do the due (diligence that is). Investors have their checklists and talk about investing in 'people'. Have your own checklist to assess who you want to invest in your venture and/or be on your board.
- Don't depend on any one person or entity. Having alternatives (as long as they're not all buddies, partners and of the same ilk) provides balance and a better chance of rational behavior.
- Lastly, learn to just say 'no' sometimes.
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