Should a Seed-Stage VC Investment Come with a Board Member?
Let’s face it: VCs speak their own language, and it’s sometimes more frat boy than Thoreau. We all know the VC who says to “trust the process” or who goes on “pity dates” with entrepreneurs. Others might joke about “putting lipstick on a pig” of an investment, or point to a newly acquired startup and say of its founder that he or she “pulled a Patzer” (i.e., left money on the table by selling too quickly). I hate to say that Sigma managing director Greg Gretsch has inadvertently taken things to a new level with the title of his new blog post, “Don’t Let a Venture Capitalist De-flower Your Startup Without Making a Commitment.” Still, the post has a thought-provoking premise: If an entrepreneur is going to be dazzled by a top-tier VC firm that wants to help seed his or her company, that funding had better come with a board commitment from the VC. Without one, the entrepreneur is facing a “double-edged sword."
