August 23, 2017
The venture capital and investor community as a whole has been under fire most of the summer as harassment allegations swirled around some of Silicon Valley's biggest investors. When it's time to pitch for money, most startup founders and entrepreneurs rely on the word of other entrepreneurs to find out which investors are the best to work with. But who can you really trust when it comes raising your next round of funding?
While this has been the way for ages, it's obviously got its flaws as some entrepreneurs may not be totally honest with each other for one reason or another. Enter, Know Your VC, a new resource that popped up to help startup founders anonymously share insights about their interaction with investors – good and bad.
Know Your VC is armed to:
“Our mission is for founders everywhere to be able to learn crucial information about investors like how helpful/involved they are after investment and most importantly how they treat or mistreat founders (information that was previously only accessible to well-connected/experienced entrepreneurs and their tight knit circles).”
Know Your VC was created by Anthony Zhang. Zhang is a Thiel Fellow and cofounder and CEO of the food delivery startup EnvoyNow (a 500 Startups alumni) that was eventually acquired by JoyRide. He has pitched plenty of investors, including some investors that were recently cited for sexual misconduct. He understands how hard it is to raise a round a funding as well as the amount of due diligence needed to understand who you're dealing with. So he created this resource to help. While the site is still fairly new, we've noted most investors are in the system waiting for startup founders to share their thought and insights.
Know Your VC is like Yelp for startup founders, but instead of rating restaurants they're rating investors.
According to a recent blog post, Zhang identified four key areas where investor acted inappropriately and disrespect entrepreneurs as:
- Cold Emails to Brain-Suck Founders
- Lack of Homework
- Stringing a Founder Along
- Harassing/Projecting Bias Toward Founders
If you've experienced any of these while working with an investor than please pay it forward to make the entrepreneurial and investor landscape a more transparent and better place – we're all in this together.
Read more about startup funding at TechCo
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