The four types of value that a VC brings to a startup aside from money.
Strategic counsel. Let's face it your startup probably can't afford to hire expensive consultants or experienced executives. One of the best things venture capital investors bring to a startup is extensive experience working with similar startups. The VC partners are invaluable strategic advisors, but also, the founders of other companies they invested in are often made available to you through the VC.
Recruiting top talent for critical roles. Most startups don't have a lot of clout or connections to help them source and hire the right people early on. VCs can help companies in their portfolio find and vet critical hires.
Business development and valuable introductions. VC partners tend to have extensive networks and all sorts of industries. They can provide critical introductions to potential customers, partners, or future investors.
Future investment. When a VC backs a startup, they usually set aside some additional funds for future investment rounds; if a startup continues to perform well, there's a high probability that the VC will invest again in a future round.
The four types of value that a VC brings to a startup aside from money.
Strategic counsel. Let's face it your startup probably can't afford to hire expensive consultants or experienced executives. One of the best things venture capital investors bring to a startup is extensive experience working with similar startups. The VC partners are invaluable strategic advisors, but also, the founders of other companies they invested in are often made available to you through the VC.
Recruiting top talent for critical roles. Most startups don't have a lot of clout or connections to help them source and hire the right people early on. VCs can help companies in their portfolio find and vet critical hires.
Business development and valuable introductions. VC partners tend to have extensive networks and all sorts of industries. They can provide critical introductions to potential customers, partners, or future investors.
Future investment. When a VC backs a startup, they usually set aside some additional funds for future investment rounds; if a startup continues to perform well, there's a high probability that the VC will invest again in a future round.
