Insider’s Guide to Silicon Valley’s Investors

Insider’s Guide to Silicon Valley’s Investors

In Silicon Valley, people say that the investor-entrepreneur relationship is like a marriage, only more important. Like most jokes, there’s a fair amount of truth behind it: Matchmaking mistakes between investors and entrepreneurs can have long-lasting and far-reaching consequences.

The initial pitch meeting feels a little like a first date: Each side looks for a “click” of personality. Next, in the courtship stage, everyone is on their best behavior, and little real assessment of fit takes place. The problem is that though liking each other is important, it is not enough to assure a good outcome in an investment relationship. Entrepreneurs are too often seduced by the friendliest individual investor or the biggest “name,” and don’t consider the long-term strategic alignment of their goals.

All savvy investors seek to put their money and other resources behind great teams to build high-growth businesses that deliver outsize returns, but different types of investors take very different approaches to achieve this objective. Variations in strategy exist between super angels, large venture firms, and micro VCs, with some firms applying hybrid models…….

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