8 Types of Venture Capitalists to Avoid — And How to Handle Them
8 Types of Venture Capitalists To Avoid — And How To Handle Them
Some investors help you build. Others eat time, ask for “one more thing,” and vanish when it matters. Call the pattern early. Protect your calendar, your price, and your sanity.
1) The Follower Fund
Loves the story, won’t go first. Needs a household name to bless the deal before they touch it. Big talk about “conviction,” zero spine on paper.
- Tells: “Circle back once you have a lead.” Warmth spikes after press hits or a famous firm takes a look.
- How To Handle: Ask on the first call: “Will you lead at our stage and target check?” If the answer is mush, tag as follow-only. No data room access until a real lead engages.
2) The Term Sheet Tourist
Hands you a shiny non-binding sheet to look “active,” then disappears at IC or tries to retrade once you’re locked in.
- Tells: Light diligence, fast “TS” with vague closing plan, no clarity on reserves or board seat.
- How To Handle: Demand a closing checklist, IC date, and named counsel in writing before you pause other talks. Add a no-shop only after confirmatory diligence starts.
3) The Valuation Mirage Shopper
Wants top-tier terms at early-stage risk. Compares you to outliers on price and to laggards on metrics. Classic anchor-and-chisel routine.
- Tells: “We back outliers” paired with a discount grab and a giant option pool ask.
- How To Handle: Share a tight range with ownership math upfront. If they won’t engage inside it, move on. Don’t negotiate against yourself in weekly “check-ins.”
4) The Data Vampire
Endless requests: raw tables, edge-case cohorts, custom exports. No decision-maker in sight. They hoard data to look smart in meetings.
- Tells: “One last cut” every Friday. You never meet the partner who can say yes.
- How To Handle: Gate access by timeline. “Happy to share X once we schedule partner review for next week.” No partner on calendar, no more exports.
5) The Ghost Texter
Hyper-responsive until you ask for a decision window. Then radio silence. Reappears the moment a lead term sheet lands.
- Tells: Replies fast to updates, dodges concrete asks. “Looping the team” for weeks.
- How To Handle: Put a timer on it. “We are locking the round on DATE. If you want allocation, confirm by DATE.” Then stick to it.
6) The Brand Peacocker
More interested in logos than business. Chases trends, wants headlines, drops you when the mood shifts.
- Tells: Asks about PR plan before churn, gross margin, or payback. References other logos every five minutes.
- How To Handle: Keep them as a co-investor at most. If they won’t do work on the model or customers, they won’t do work post-close.
7) The Control Freak
Heavy terms out of proportion to check size: super pro-rata, vetoes everywhere, board control for a token investment. Hard pass.
- Tells: Wants multiple blocking rights, MFN on everything, and full info rights for a tiny ticket.
- How To Handle: Tie influence to ownership. “Board seat at ≥X% and lead role.” Anything else lives in an observer right with a sunset.
8) The Alumni Gatekeeper
Filters by pedigree, not proof. If you didn’t share dorms, clubs, or zip codes, you’re uphill. This bias kills real opportunities and wastes time.
- Tells: Backchannel checks only through their circle. Obsession with where you studied, not what you’ve shipped.
- How To Handle: Keep the call short, keep it clean. If they cannot engage with customer proof and unit economics, move on. You are not changing a worldview in a 30-minute Zoom.
Protect Your Round: Four Hard Rules
- Qualify on the First Call. “Do you lead at our stage and target check? What ownership do you need? Who decides, and when?”
- Control the Clock. Share a decision window and stick to it. Deadlines force clarity. Drift invites games.
- Trade Data for Access. More data follows partner time on the calendar. Not the other way around.
- Put Terms on Paper. Real interest shows up in a document with names, amounts, and a closing plan. Everything else is noise.
You do not need every investor. You need the right few who decide fast, write real checks, and show up after close. The rest can watch from the sidelines.
Editorial. This piece targets patterns, not individuals. Some firms break the mold and lead with fair terms and real support. If you are one of them, founders will know.
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