Entrepreneurs who are looking to fundraise will meet with a lot of VCs. While they are trying to convince the VC to invest, the best entrepreneurs are also evaluating which VCs they feel would be most helpful to bring onto the cap table. Every VC will claim they have industry/customer relationships for introductions, domain expertise, and some track record/examples of success (and most will or they won’t be in business very long). You should also know their thesis, fund/stage, etc. But what else should you be looking for?

Available

The diligence process is a good way to test how fast the VC moves. As a startup, speed is your super power and you need someone who can move at your pace. Ask questions around which partners/team members do you get access to? How often do they meet with their portfolio companies? How involved do they like to be? As an entrepreneur there are times you need the VC to stay out of the way so you can execute, and there are times you need help right now. Be sure your VC can be there when you need them.

Challenging

It is easy to have someone who just says yes to everything you want to do. But as someone who may be on your board, you need a counterbalance that can ask the hard questions, play devil’s advocate, and challenge your thinking. How do they challenge their CEOs' thinking? What new points of view do they bring to the conversation? How do they communicate when they disagree with your approach?

Supportive

The entrepreneurial journey has many ups and downs. How can they be supportive during those difficult times? Sometimes that could be insights, sometimes that could just be an ear to listen while you vent. Speak with some of their successful portfolio company founders, but also speak with some that didn’t have a great outcome and hear what those entrepreneurs said about their interactions with the VC during those tough times.

Finding the right partner can be a major supporter in your journey, whereas the wrong partner can make an already difficult job more painful. Find those partners that share your ethos, but will also provide different perspectives to push you forward. Choose wisely!