Max Niederhofer, partner at Heartcore, writes about the increased transactionality of VC-founder relationships.
I, and Alliance as a whole, strongly believe that a true founder-VC partnership is possible. And given that startups take 5+ years to build, it makes a lot of sense to think about fundraising more as relationship than a transaction. If you have the luxury to do so…
Most startups receives one term sheet in a successful fundraise. That doesn’t leave a lot of room to be too picky about the relationship, even if that would be preferable.
Waiting to sign a term sheet a couple of weeks in hope of finding a hopefully better investor isn’t appealing, as cash in the bank today instead of tomorrow is equivalent to a lot of relationship.