Entrepreneurs see their venture backers as the ones with control in the relationship, according to a recent online survey conducted by Research Data Technology for a member of the National Venture Capital Association who wishes to stay anonymous. And just as many of them may have felt about the expectations set by Mom (or Dad), VCs’ expectations are viewed as being unreasonably high.
According to an online survey of entrepreneurs at venture-backed companies, 61 percent think VCs have control in the relationship, whereas 24 percent believe the entrepreneurs do. The rest aren’t sure, or have checked their egos at the door. When it comes to expectations for the investment, 47 percent of entrepreneurs believe VCs are too aggressive and 10 percent of thinking VCs are downright unrealistic. On the other hand, 43 percent believe the VCs are setting reasonable expectations.
Unlike your family, it is possible to shop around for a VC. Entrepreneurs surveyed did just that, visiting an average of 12 firms before getting funding from (on average) three or four firms in total.
source: anonymous member of the NVCA