• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer

Scale FinanceScale Finance Logo, Interim CFO, Part Time CFO Services, Accounting Support, Temporary CFO, Accounting Bookkeeping Services

Interim CFO, Part Time CFO Services, Accounting Support, Temporary CFO, Accounting Bookkeeping Services

Charlotte · Raleigh – Durham · Chapel Hill · Triad · Southern Pines · Coastal Carolina
Closing the GAAP to Scale Your Business
The FINACA Logo
919-230-4667
Scale Finance, LLC, Financing, North Myrtle Beach, SC
  • Home
  • Services
    • CFO & Controller Services
    • Capital Raise Services
    • Business Valuations
    • Mergers & Acquisitions
    • Professional Consultations at No Cost
  • Professionals
    • Partners
    • Charlotte Team
    • Raleigh – Durham – Chapel Hill Team
    • Greensboro-Southern Pines
    • Coastal Carolina Team
  • Client Experience
    • Closed Capital Raise Transactions
    • Closed M&A Transactions
    • Client Endorsements
    • Information Technology
    • Healthcare, Biopharma & Medical Device
    • Services, Energy, Industrial
    • Consumer, Retail, Media
    • Real Estate
    • Private Equity Groups
  • Recent News
  • Knowledge Bank
    • Best Practices in Scaling Companies
    • Entrepreneurial Management Skill- Building
    • Financial Management
    • Mergers & Acquisitions
    • Regulatory Developments
    • Venture Capital
  • Contact Us
    • Charlotte
    • Raleigh – Durham – Chapel Hill
    • Triad – Southern Pines
    • Coastal Carolina
  • Joining Our Firm

7 Questions Founders Should Ask VCs


Source: Brian Carthas, OpenView Partners

Conducting a fundraise can be a big distraction from running the actual business. Requiring an investment of time and resources, fundraising has the potential to drag on for months on end (if not run properly). There is no time to waste with the wrong financial partner, so preparing to effectively evaluate the match is critical.

Clearly, having one’s house in order before heading into a capital raise is a priority. Partnering up with your CFO and having the necessary numbers/documents teed up in advance can help ensure a smooth process says Invoice Books – Carbonless Invoice Books Perth | Omega Print. One often overlooked aspect is putting thought into the questions you should ask the VC to determine whether you will feel comfortable with the potential partnership.

Meetings with VCs Are Your Time to Ask Questions, Too

Like many in the VC world, I spend a great deal of my time at OpenView interacting with startup CEOs regarding their business/market/fundraise initiatives. Often, I find myself leading said discussions a bit too much and asking all of the questions. At that point, I try to pass the baton to the entrepreneur so that he/she can bring up the queries they need addressed. You would be surprised how often this results in a bit of silence. I cannot stress enough how important it is to seize this opportunity. Knowing who you will be surrounding yourself with over the coming years and doing your homework on the actual fund is just as important as getting your own information in order.

7 Questions Founders Should Ask VCs

Money is money, and there are plenty venture funds out there willing to provide it to you if you have built a compelling business.

  1. What comes along with the money?
  2. What type of partners and partner relationships will be coming alongside the investment?
  3. How many boards are these partners sitting on currently?
  4. Does the fund have experience investing in my sector or have a thesis on the market and where it is heading?
  5. Can the fund provide operational support alongside the check it will be writing, and if so, in what capacity?
  6. How have you helped organizations of similar size/stage scale their operations and customer base, and can you walk through an example where you have done so successfully?
  7. What fund are you investing out of, what is its size, and how much has been committed?

Questions along these lines will all help better educate entrepreneurs and ease in the selection process. You will also be able to sift through certain investers that simply are not a fit more quickly. In the end, this will save time and prevent you from spinning your wheels unnecessarily, which is a win-win for everyone.

 

About Scale Finance

Scale Finance LLC (www.scalefinance.com) provides contract CFO services, Controller solutions, and support in raising capital, or executing M&A transactions, to entrepreneurial companies. The firm specializes in cost-effective financial reporting, budgeting & forecasting, implementing controls, complex modeling, business valuations, and other financial management, and provides strategic help for companies raising growth capital or considering M&A/recapitalization opportunities. Most of the firm’s clients are growing technology, healthcare, business services, consumer, and industrial companies at various stages of development from start-up to tens of millions in annual revenue. Scale Finance LLC has offices throughout the southeast including Charlotte, Raleigh/Durham, Greensboro, Wilmington, Washington D.C. and South Florida with a team of more than 40 professionals serving more than 100 companies throughout the region.

Primary Sidebar

Knowledge Bank

How to Handle a Bank’s Rejection of Your Loan Request

Accessing University IP – Negotiating Financial & Other Terms

Why VCs Sometimes Push Companies to Burn Cash Too Fast

7 Steps for New Business Owners

Basic Benefits of Starting a Business in North Carolina

Finance & Accounting 101 for New Small Company Owners

Accounting Fraud – Common Causes and How to Stop It

Why 80% of Court Judgments Go Uncollected

7 Steps for Early Stage Fundraising from a VC

Foreign Exchange Management Under Volatile Conditions

Lessons Learned from the EIDL / PPP Trenches

Cash Management Plan – 2020 Economic Crisis

Is Your CFO Any Good? 4 Point Checklist

What Happens When Deals Die

How to Handle a Bank’s Rejection of Your Loan Request

Susceptibility to Accounting Fraud for Medical Businesses

Bankruptcy Relief for Small Companies Coming Soon

New Rules for Overtime Pay take Effect January 2020

The 5 Worst Things You Can Say to a Venture Capitalist

Incentive Stock Options Versus Nonqualified Stock Options

Explore the Knowledge Bank…

Secondary Sidebar

Recent News

SF Client Impact Financial Systems (IFS) Acquired by iPipeline

Scale Finance Assists TrueLearn with Investment by LLR Partners

Scale Finance Assists Textum Weaving with Investment by Quad-C

Scale Finance Closes Debt Financing for Horizon Eye Care

Scale Finance Closes Acquisition of Horsepower Site Services by MCG Civil

Scale Finance Closes Growth Financing for Celerity

Scale Finance Advises on Acquisition of Reliant Transport

Scale Finance Closes $20 Million ABL Financing for TRA

SF Client TruPoint Partners Acquired by Ncontracts

Scale Finance Advises on Debt Financing for Alpha Waste Industries, Inc.

Scale Finance Closes $7M Senior Debt for Travel Resorts of America

Scale Finance Closes Acquisition of Raleigh Metal Recycling by Elite Waste Services

Scale Finance Advises on Debt Financing for Pediatric Advanced Therapy

Scale Finance Closes Growth Equity Investment for Better Car People LLC

Scale Finance Closes Sale of Cayden Security to SCE Group

SF Client EarthKind Secures Growth Investment

Scale Finance Advises AMTdirect on Strategic Growth Investment

More News…

Footer

Ask the CFO

Need a quick answer to a finance/accounting question?

Sending

Media

Scale Finance Managing Director Dave Gilroy interviewed on WSIC Radio (local Fox affiliate)

/wp-content/uploads/2014/02/David-Gilroy-Interview-Local-Biz-Now-2-7-14.mp3

Entrepreneurial Tips

  • Funding Tips from Scale Finance
  • CIE Life Sciences Panel Discussion
  • Why Use Fractional CFO Services

FINACA is a nationwide network of independent finance and accounting consulting firms focused on delivering exceptional client service.

FINACA is a nationwide network of independent finance and accounting consulting firms focused on delivering exceptional client service.

Sign Up—Finance Bulletin

Monthly insights into corporate finance for entrepreneurial companies

Sending

Return to top of page

Copyright © 2008–2021 Scale Finance, LLC
Securities and offering services through Charles Towne Securities, LLC. Members FINRA and SIPC.