When they hear a startup is looking for venture capitalists, many people think that only value a venture capitalist adds is money. However, that is wrong. Beyond money, here are some benefits that venture capitalists have for you.
Help with fundraising
Investors want your company to grow. Once they have skin in the game, they shift from skeptics to salespersons. When it comes to raising fund for your second or third round, your VC are your best advocate. Chances are that your investors have formed an investment syndicate with other VC firms. Don’t hesitate to ask your investors to introduce you to those other firms.
Help with recruiting
VCs maintains contact databases of senior talent. It is common for VCs to know specific executives who can guide a company through sales. As entrepreneurs, this will save you time and energy of trying to look for someone who can take your startup to maturity.
Experience on boards
A lot of VC partners sit on boards. Sitting on boards is not only a mean for investors to monitor investments but also a platform from which to give value and expertise without interfering in day-to-day operations.
Today, if you are planning to have venture capitalists, don’t forget to ask them what they might bring to the table.