How much do you know about what goes on within your VCs’ own firms?
During my time in VC, we did a lot of due diligence on the founders in whom we might invest, learning about their personalities, work histories, management styles, strengths, and weaknesses. We assessed their management teams, how well the members of those teams worked together on tough issues, and current and future holes in the team. Such due diligence efforts are standard within the industry. However, not a single founder turned the tables and asked me questions about the personality and style of the GP who might be joining their boards, how well the GP got along with the firm's other GPs, how much gunpowder was left in the firm’s current fund, or when the next round of fund-raising would commence. (Several did ask about the firm's overall history of investing in their segments and similar general issues.) Due diligence was largely a one-way process. Some founders succeed despite this ignorance about their investors. However, they are the lucky ones, for I have seen many