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5 crucial questions that will help you choose your VC dream team
When you’re out saving the world, it sometimes helps to imagine that you’re a superhero. The startup world is bright and exciting — full of “Pow!” and “Wham!” — but you can’t do everything on your own.
In this bright and crazy comic-strip world, your investors are part of your dream team, popping up at just the right moment and kicking butt on your behalf.
Finding the right venture capital fund to support your startup is like holding auditions for a loyal sidekick. You need to find a balance between brains and brawn, size and skill. You need investors that offer what your startup lacks and understand how to help you succeed.
Here are five questions you should ask as you put together your dream team:
1. What’s the VC firm’s average check size?
This is important to help you determine if the firm can lead your round, co-invest, or if it’s not going to be a fit at all. It’s also important to pay attention to the check size that the firm is writing you relative to the rest of the investments. This seems like a no-brainer, but if you’re receiving a check that’s larger than the venture firm’s typical check size, you can expect the venture fund to be more involved and vice versa.
Some firms will have this information on their website, along with other details to help you make your choice. Public databases like CrunchBase and AngelList can also tell you plenty about VCs, their habits, and how they’ve invested in the past.
2. What kind of support can it offer?