This is a continuation of my post about The VC Due Diligence Process and builds on The 3 Laws of Venture Capital . Both are commentaries of David Silver's book Venture Capital: The Complete Guide for Investors . Continuing with the audits that VC's should perform when reviewing investments, the second of the five audits is the review of the entrepreneurial team. The two team members that VC's should focus on are the entrepreneur and the manager partner . Entrepreneurs are responsible for the launch of the company while the manager is responsible for building the company into something that has value. Think of entrpreneurs as the technologist or visionaries and the manager partners as the "gray hairs" they bring on to make their dream a reality. Entrepreneurs generally don't select managers well and have trouble delegating. This is because entrepreneurs believe others can't do things as well as they can (and this is, in fact, usually true). A great ...
observations on business, the economy, and entrepreneurship