Wednesday, May 5, 2010

What can you get from VCs other than capital?!

I found this article by Brad Feld address a very important point "What expect other than funds from a VC?".
Here is an excerpt.

" At the end of the first board meeting, spend some time talking about your expectations for your board members (including your VCs), ask if they are reasonable, and then go around the table and ask each board member what they’d like to specifically help with between now and the next board meeting.  Explain that you want to develop a cycle of accountability for each board member to the company and use this to (a) develop deep engagement from each board member between meetings, (b) benefit from the experience and wisdom of each board member on a continual basis, and (c) set a strong tone for the leadership team (and the company) that everyone has functional responsibilities that they are held accountable to.  Acknowledge that it will take a few board meetings to get into a good rhythm with this, but be clear that you’ll spend a little time at the next board meeting going through individual assignments, what was done, and what the new assignments are until the next board meeting.
The assignments should be specific – if they are general (such as “help with strategy” or “help with the financing”) they will be useless.  Make sure the assignments play to the individual board members strengths and interests.  They should provide leverage for the leadership team; not create make work.  They should be impactful, but not mission critical."

The actual article can be found at Business Insider.

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