Seed Capital From Angel Investors: Brian Garrett, Co-Founder And Managing Director, Crosscut Ventures (Part 11)

By guest authors Irina Patterson and Candice Arnold

Irina: What else do entrepreneurs need to understand about venture funding?

Brian: There are five- or ten-year time frames before you have success, so you have to really be aligned with your investor on the vision, what you hope to accomplish, what hurdles you’re going to see along the way and, in essence, be ready to go to war with that individual.

You want to make sure you’re aligned. Don’t just take money because it’s offered to you. Make sure these are the right people whom you want to do business with long term.

Irina: What do you think VCs could do better to increase their chances of success?

Brian: Well, I think there’s always room for improvement. Transparency with the entrepreneurs who are pitching for capital. You know, it’s hard. Nobody likes the idea of saying, “I don’t like your business. I don’t want to invest.”

That’s never a comfortable dynamic, but I think we owe it to the entrepreneurs to be as candid as possible about our concerns, and give them the opportunity to prove us wrong.

There’s nothing I like more than telling entrepreneurs why I have concerns about their business, and then have them come back in two, three, or four months and say, “Well, we took care of that one. Now what do you think?”

Giving me another chance to evaluate the opportunity and giving the entrepreneur a chance to prove me wrong is important.

I think angel groups, in general, have to be as transparent as possible, to give clear feedback. We have to explain our reasons for doing what we do, because it can’t be a black box situation for the entrepreneurs. That’s frustrating. Having been on the entrepreneurial side and understanding it, I know that they need to clearly understand what people are looking for so you can help address their concerns.

Irina: Thank you, Brian. Excellent insights.

This segment is part 11 in the series : Seed Capital From Angel Investors: Brian Garrett, Co-Founder And Managing Director, Crosscut Ventures
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