Startup Tips: How to Pick the Right VC

An article we liked from Thought Leader Jason Lemkin of SaaStr:

No One Will Remember Who Your Investors Were, Or How Much You Raised

These are not just the best of times in SaaS and Cloud, but the best of times on steroids. 

The best of the best of times. It’s just crazy.

Huge VC rounds everywhere.  Unicorns every week.  Times are good — well, at least for the select few.  The select few with topic metrics, top brands, and top traction.

So if you are offered a big term sheet — who should you pick?

I just have one bit of advice: pick who can most help you now.

No one later will care.  Do you know who invested in Datadog?  In Zoom?  In Notion? In Webflow?  Do you care?   No.

Do you know which fancy partner was on the board at Slack?  No, you don’t.  Even if you do, soon you will forget.

I do think it matters which investor you pick.  You can only sell so many slices of the cap table, so many times.

So when you do sell a big chunk of that cap table — pick who can help you the most.  Not who, or the amount, that sounds the best on...

Read the rest of this article at saastr.com...

Thanks for this article excerpt to Jason Lemkin of SaaStr.

Image by Pete Linforth from Pixabay 

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