Investor Connect Podcast

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Founders looking to raise funding from corporate VCs should avoid the following mistakes:

  1. Not matching the corporate VC to the needs of the startup - corporate VCs bring not only money but strategic value.
  2. Not understanding the corporate VC investment strategy - some corporate VCs invest for a financial return while others invest for a strategic partnership.
  3. Not building a strong relationship with the corporate VC team - it’s best to forge a good working relationship upfront as it will bring value later.
  4. Not doing diligence on the corporate VC -  the founder should be doing as much diligence on the corporate VC as the VC is doing on the startup.
  5. Not knowing what you want from the corporate VC - it’s best to identify the needs of the company first and then choose a VC based on that.
  6. Not preparing for the product and technical diligence a corporate VC will put on your startup - a corporate VC comes from the large company world with higher standards for product and technical work.
  7. Not getting the corporate VC to waive audit rights - audits are a major cost in time and dollars.
  8. Not preparing for regulatory issues especially in the financial space - not preparing for corporate team transitions. 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Direct download: mistakes_founders_make_with_corporate_vcs.mp3
Category:general -- posted at: 6:00am CDT