SaaStr · 2015-09-26
· 3903d
Identifying Weaknesses in Venture Capital Organizations: A Founder's Perspective
Jason Lemkin analyzes how founders can identify weak venture capital firms and partners, outlining key characteristics founders value in VCs including capital availability, brand equity, and operational support. The article examines specific weaknesses such as inability to write follow-on checks, lack of portfolio success, and excessive involvement in company operations, while providing practical evaluation criteria for founders.
Metrics in this report
Example Check Request
10$M
illustrative
example first check amount that may be too large for $80M fund
Example Fund Size
80$M
illustrative
used as example for calculating appropriate check size relative to fund
First Check Investment Percentage
2%
maximum
typical VC first investment as percentage of fund