Note: The views & opinions expressed in these essays are strictly my own, and not those of any entity I may be associated with as an employee, consultant, promoter, investor, etc.ARCHIVES
Technology Entrepreneurship in India - Teams
Technology Entrepreneurship in India - Generating Revenue
Technology Entrepreneurship in India - Raising Capital
Equities, ETFs, F&O
Oct 2011: Equity Risk Premium for India
Jun 2011: Investing in Indian equities
Technology Enterprises in India
Nov 2010: Technology investment in India - WATER
Aug 2010: Technology enterprises in India - 3 avatars
Risk Capital for MSMEs
Mar 2010: Risk mitigation for investors in MSMEs
Mar 2010: Why don't (Indian) MSMEs get risk capital?
Feb 2010: Angel investing - Will it work for Indian MSMEs?
Feb 2010: What's so special about innovative MSMEs?
Feb 2010: Where do Indian/NRI (V)HNIs invest?
Feb 2010: Funding options for innovative MSMEs in India
Jan 2010: Innovative MSMEs in India
Venture capital & venture capitalists (VCs)
(Last revised Mar-2012, Send comments to firstname.lastname@example.org)
Although most technology entrepreneurs are aware of venture capital firms, they do not always know how to pick the right one. Fewer know the importance of picking the right partner within the firm. And fewer still know what makes a good VC.
This is due to an asymmetry: entreprenenurs interact with only a few VCs, while VCs interact with numerous entrepreneurs. Thus, VCs are able to hone their pattern-matching skills and abilities to pick the 'best' founders. Founders, on the other hand, need to put in quite a bit of deliberate effort to identify great VCs.
So, what should you look for in a venture capitalist?