I was recently speaking with some founders about their fund raising process. They had received a term sheet from a VC and were wondering whether to work with this firm. I personally had three separate data points from entrepreneurs who took money from the firm that said “never again.”
I really try to stay out of the middle of these things so I softly said to the team, “maybe you should contact these companies and see how their experience went?” From there I figure they can both figure out what to discuss – or not. One bad comment doesn’t always scare me as there’s often two sides to every situation. But three from different, independent sources? Pattern, me thinks.
To read the full, original article click on this link: Why it’s Critical That you Reference Check Your VC | Both Sides of the Table
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