Mastering the VC Game: A Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms by Bussgang Jeffrey

Author:Bussgang, Jeffrey [Bussgang, Jeffrey]
Language: eng
Format: mobi
Publisher: Portfolio
Published: 2010-04-28T16:00:00+00:00

LOOK FOR CHEMISTRY

So now you have a sense of the role that VCs can and should play in the start-up. With that framework in mind, let’s turn to the entrepreneur’s process for revealing the pros and cons of working with different VCs and their different firms. For me, and for all the VCs and entrepreneurs I spoke with for this book, the most essential element in the relationship between the entrepreneur and the VC boils down to one word.

Chemistry.

When I say chemistry, however, I’m not talking about friendship or social compatibility or finding a drinking buddy. Yes, being socially compatible is a plus for entrepreneurs and VCs. You often hear the refrain, “Life’s too short to invest in people you don’t like.” But the real emphasis on chemistry concerns the thinking styles, ways of working, enthusiasm for the business, and a shared view of the future. You want to find someone you think you can work with and someone you believe you can trust.

Tim Bucher has learned the importance of chemistry in spades over the years. Tim is one of Silicon Valley’s most accomplished serial entrepreneurs. A former Sun engineer, co-founder of WebTV (sold to Microsoft), a former Apple executive (ran all of Macintosh engineering), and founder of Zing Systems (sold to Dell), Tim may be the only entrepreneur on the planet who has worked closely with Scott McNealy, Michael Dell, Bill Gates, and Steve Jobs. My partner Jon Karlen led an investment in Tim’s Zing Systems, which developed a mobile music software platform to compete with the iPhone, and we had the pleasure of working closely with him and learning some of the secrets to his repeated entrepreneurial success.

Having worked with numerous VCs, good and bad, Tim points to chemistry as a key success factor. “The chemistry piece is so critical with the VC partners you team up with,” he told me. “If you’re doing a pitch and everyone is all stodgy but they want to do an investment, even if they give you the best term sheet and everything, stay away from that. I’d rather take the lower offer, the lower term sheet, but work with folks that can become part of the team.”

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