How to Pick a Venture Partner

So, your best options, I think, when you’re thinking about a venture capitalist is to have a choice to say no. That choice to say no is the fact that your company is profitable and growing and something that is sustainable on it's own right. Now, if you're in that position and then you can negotiate from a position of strength, then there are great things to focus on. But I think your first focus should be, "I'm making sure you don't have to make that decision." Edgar talked a lot about the importance of what drives entrepreneurship and belief was the first thing he talked about. I think when you're talking about getting an investor and Nick mentioned, when you're taking an investor in, it's like a marriage. It is like a marriage. It's a long-term one. It's very difficult to get a divorce. The key is belief, belief that you feel that this investment partner believes in what you're trying to accomplish — your goals, your mission in your company and what you're trying to achieve in life. A lot of people spend a lot of time on the financial terms of the transaction and don't really try and understand what are your shared goals, what are your shared values, what do you want to achieve. That's because we're all busy. We don't spend the time to go out to dinner and really get to know somebody. But I do, I still do that with entrepreneurs. A lot of people don't but I really try and understand what makes them tick and what success is in their mind because you're buying not only a piece of the business, you're buying your share of that person's dreams and fears and issues. I view that as a partnership -- when you really understand what another person's motivations are. If somebody is not interested in that part of the equation, then you ought to question frankly whether or not this person is really going to be there for you long-term. Secondly, I think how you're treated in the process is an important part of that decision making. If the shoe doesn't fi...