Here are the tips for VC: Make your operations more scalable, increase diversity, fund in smaller amounts and expect less control and equity in exchange.
I would add to that:
Allow founders to [partially] cash out early.
I think that may be the single most significant thing other than investing smaller amounts. Founders who have to wait 4-6 years gambling ever higher stakes on a "liquidity event" that may never happen (on the VCs' terms, that is) are increasingly finding that it's better to just tell institutional investors "blow me" and wing it themselves, unless the project is just prohibitively capital-intensive.
Nobody who's young and on the margin of broke wants to be strung along by condescending "carrots" of "future incentives" and encouraged to "think about the big picture" instead of focusing on getting some actual payoff from one's efforts.
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Here are the tips for VC: Make your operations more scalable, increase diversity, fund in smaller amounts and expect less control and equity in exchange.
I would add to that:
Allow founders to [partially] cash out early.
I think that may be the single most significant thing other than investing smaller amounts. Founders who have to wait 4-6 years gambling ever higher stakes on a "liquidity event" that may never happen (on the VCs' terms, that is) are increasingly finding that it's better to just tell institutional investors "blow me" and wing it themselves, unless the project is just prohibitively capital-intensive.
Nobody who's young and on the margin of broke wants to be strung along by condescending "carrots" of "future incentives" and encouraged to "think about the big picture" instead of focusing on getting some actual payoff from one's efforts.