BizSugar.com › Raising Capital › Are the Venture Capitalists Circling? – Tips for Working with VCs

Some founders may hold the view that the time necessary to keep the venture capitalist in the loop is better spent on the pressing tasks of acquiring customers, running the business or upgrading product offerings. This is a misconception. Developing good lines of communication with venture capitalists is vital to ensuring that any partnership that may materialize is the best possible fit. In short, it can save time, effort and grief down the road. Transparent and effective communications will give you a positive image and may result in side benefits, like introductions to potential partners, clients, even employees. Remember, venture capitalists are well-connected people.