Forma vc logo

How to Evaluate a VC: What Founders Should Ask

Posts -Feb 7, 2025

three men sitting while using laptops and watching man beside whiteboard
three men sitting while using laptops and watching man beside whiteboard
three men sitting while using laptops and watching man beside whiteboard

Introduction
Raising capital is often portrayed as founders competing for investor attention. But the reality is — the relationship is two-sided. Just as VCs evaluate startups, founders must evaluate VCs. The right partner can be the difference between accelerated growth and misaligned expectations.

Key Questions Founders Should Ask a VC

  1. Beyond capital, what value do you add?
    Does the VC provide access to mentors, talent pipelines, or global expansion networks?

  2. What’s your approach to follow-on funding?
    Are they likely to back you in later rounds, or will you need to find new investors?

  3. What’s your governance style?
    Do they prefer hands-on involvement or a lighter touch? Founders need alignment.

  4. How do you support companies in crisis?
    True value emerges when times are tough.

  5. What’s your sector expertise and track record?
    Do they bring operational playbooks and market insights relevant to your industry?

Why This Matters
Founders often over-prioritize valuation and overlook long-term alignment. A supportive VC reduces founder burnout, opens doors faster, and increases exit opportunities.

Conclusion
Choosing a VC is less about the size of the check and more about the strength of the partnership. Founders should treat it as carefully as choosing a co-founder.

Scroll0%

0%

Create a free website with Framer, the website builder loved by startups, designers and agencies.