How to Pick the Right Partner at a Venture Capital Firm
The individual partner you choose at a VC firm can impact your startup more than the firm's brand. Here's how to conduct thorough due diligence and find an ally, not a roadblock.
TL;DR: Choosing a VC partner is a 10-year decision that's as critical as hiring a co-founder. The partner matters more than the firm's brand, so your diligence should focus on them. The best way to learn the truth is to find and talk to founders from the partner's failed or struggling portfolio companies—not just the happy references they provide.
Key takeaways
- The individual partner, not the firm's brand, will be your day-to-day reality.
- Your goal is to find a trusted co-pilot, not just a source of capital.
- Conduct "off-list" reference checks with founders of failed companies for the real story.
- Ask partners how they act when things are going badly, not just when you're hitting plan.
- Beware of partners who are distracted, use vague platitudes, or can't explain your business.
- A great partner is a critic and a sparring partner, not just a cheerleader.
You’re about to give someone a board seat and significant influence over your company for the next 7-10 years. This isn’t just about securing capital; it’s about choosing a co-pilot. The individual venture capital partner you sign with will have a greater impact on your business—for better or worse—than the firm’s logo on a term sheet. This decision is as critical, and as permanent, as picking a co-founder.
Don't get distracted by a firm's brand. The firm isn't on your board calls. The firm doesn’t text you when a key hire quits. The partner does. You are not marrying the firm; you are shackling yourself to a single human being who will become your boss, your advocate, and your therapist. Choose wisely.
Why the Partner Matters More Than the Firm
An investor from a top-tier firm can be a liability if they aren't a true believer in your vision. A partner from a smaller firm can be your greatest asset if they are willing to go to war for you.
Your partner is your primary interface to the "firm." They are your representative in internal partner meetings where decisions about follow-on funding, pro-rata rights, and support for your next round are made. If your partner isn't respected internally or isn't willing to pound the table for you, you won't get the firm's full support when you need it most.
A great partner provides air cover, opens their personal network, and gives you candid feedback. A bad one adds noise, second-guesses your decisions, wastes your time with performative "help," and can become a toxic presence on your board. You can't fire a board member.
A Tactical Framework for Partner Due Diligence
You run diligence on hires and customers. Apply that same rigor to your investors. Your goal is to de-risk the human element. Here’s how.
Step 1: Create a "Partner Scorecard" Before You Talk to Anyone
Before you evaluate them, define what you actually need. Go beyond "smart" and "helpful." Get specific. What are the three biggest gaps you have on your founding team right now?
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