Forbes asked Guy Kawasaki what one might expect from a VC investor. Kawasaki offers down to earth advice in line with what I hear from my start-up friends.
Some highights:
“As long as things are going well, a venture capitalist will leave you alone. Understand a venture capitalist’s life: He’s on as many as ten boards that meet at least quarterly and sometimes once a month; he has to raise money to invest and keep about 25 investors informed and happy; he’s looking at several deals a day; he’s dealing with five other partners. He doesn’t have the time to micromanage you–and if he thought he’d have to, he probably wouldn’t have invested in you. ”
and
“Whatever the first offer, ask for a 25% higher valuation because you’re expected to push back. In fact, if you don’t push back, you may scare the venture capitalist if he thinks you’re not a good negotiator. It would be nice to have some arguments to show why you believe your valuation should be higher–saying that this book told you to push back isn’t sufficient.
At the end of the day, though, if the valuation is reasonable, take the money and get going. You’ll see that you either make more money than you ever thought possible or your organization will die.”