In this interview with Jeremy Glaser, who is a partner at the law firm Mintz Levin and also serves as Co-Chair of the firm’s Venture Capital & Emerging Companies Practice, we discuss the importance of selecting the right investors for you startup. It isn’t all about the cash. You need to find the right people that will positively contribute to your company, especially if they are going to be part of your board of directors. Try to find investors that will contribute positively to your company and be part of the team.
Jeremy: I always tell my clients, when you’re going out to get investors, you need to really understand that the investor isn’t just writing a check and then disappearing. You’re going to be dealing with them on a day-to-day, weekly or monthly basis. You’re going to want them to provide more value than just the cash. Particularly if you know there is going to be a board seat associated with that investment, you absolutely need to get to know that person, make sure that you get along personally and professionally. You want to know that they are going to bring a lot more to you than just writing that check. I know it’s hard to raise money. I don’t want to belittle how difficult that is, but it’s a lot easier than it is to raise money from the right person who is going to help you advance your business and not hold you back. Unfortunately, I’ve seen some investors and board members who are a negative influence, where the company hasn’t taken the time to understand if this person (the prospective board member and investor) has right mix of talents and personality that you need for your business.
This is Patrick Henry, CEO of QuestFusion, with The Real Deal…What Matters.