Today there are more funding options for early stage startups than ever before. This increase in venture funding is mainly due to the emergence of non-traditional investors such as hedge funds and mutual funds. In this slide deck you will learn how to determine which VC is right for your startup.

1. 4 Indicators that a VC
is Right for Your Startup
by Brady Bohrmann,
Partner at Avalon Ventures

2. About Brady Bohrmann
Brady has over 20 years of experience as a venture capitalist and
operating executive in both information technology and biotech. His
focus is on early-stage investments and backing talented entrepreneurs.
Throughout his venture capital career, he has worked with over 75
companies. He currently is a director or observer of many Avalon
portfolio companies, including Backupify, Chart.io, Cloudant, Inc., Conjur,
Indix, Juliet Marine Systems, Kaltura, Kinvey, Memrise, Nanigans, Pingup,
Redbooth, Selectable Media, Simulmedia, The Happy Cloud, Twinstrata
and Vook.

3. Today there are more funding
options for early stage
startups than ever before.

4. In the first three
quarters of 2014, $33
billion was invested
in U.S. startups by
venture firms alone,
surpassing the $29.8
billion invested in all
of 2013.

5. This increase in venture funding is mainly due
to the emergence of non-traditional investors
such as hedge funds and mutual funds.

6. How to Determine Which VC
is Right For Your Startup

7. 1. They have good references
from startups and other VCs
• What do previous or current companies they’ve invested in say?
• Do other VCs commend them for their collaboration?
• Have they made historically successful investments?
• What is their track record?
• Where is the firm in terms of overall performance?
• What stage is the VC fund in? Do they have reserves?

8. References
It’s important to get a reference before you ask for a
meeting with a venture capitalist.
From this, you’ll be able to tell pretty quickly if a VC
has a history of being fully committed and
supportive of their portfolio companies, or bull-
headed, arrogant or difficult to work with.

9. References
While it’s important to note that
different VCs have different styles,
very little gets done with an
incompetent person in the room.

10. 2. They listen first
Listening is one of the most
undervalued skills of a
good VC. It means that they
understand the value of
letting the CEO lead the
company.

11. A Good VC Listens First
A good VC knows only to interfere when
necessary, not at every opportunity. They also
will not bull rush their way into the company,
assume they’re always right, or apply what
has worked in a previous scenario.

12. A Good VC Listens First
Listening is especially important because innovation is
happening at a staggering pace -- even changing business
plans and the way money is made.
Listening to the market, customers and other board
members are all vital to succeeding in the good times and
the hard times because things will get hard.

13. 3. They don’t run at the first
sight of blood
You should test their commitment to your idea, the
company and the team.
• Do they talk about it and actively promote your company?
• Are they genuinely as excited about growing the
company as you are?
• Will they be your “fox hole buddy” when times get tough?

14. They don’t run at the first
sight of blood
The best VC for you will be very excited
about partnering with your company and will
bear down with you when things get hard -
because it will get hard.

15. 4. Their focus is your
success
The right VC knows that their job is to work
for you, not the other way around.
Their main concern should be how they can
make the CEO insanely successful!
They should instinctively know how to do
more with less intervention.

16. Focused on your success
If they can only engage at certain
strategic points, it prevents them
from meddling too much, becoming
a distraction, or worse, a dictator.

17. Focused on your success
The people you surround yourself with at the table will
make all the difference in the result of your company.
That’s why I believe it’s so important that founders
know how to build an effective board. And there are
certain personalities that are harmful to have at the
table, but by far the worst is the one that sees their
success as more important than yours.

18. When VC Isn’t Right
If you ever have serious concerns about the
VCs interested in investing in you, it is
important to consider if venture capital is
even the best option for you or not.

19. Funding Options
There are many options for funding early stage
companies and the future of yours will depend
significantly on the people you choose to partner
with.
That’s why selecting these people carefully is a
decision worth putting every thought and
consideration into.

20. Learn more!
Visit http://avalon-ventures.com/blog for more actionable advice
on early stage startups, VC funding and other entrepreneurial tips.