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Winning: Align on Values

Description

When a VC is able to connect with a founder on the level of values, they form a deeper understanding. Based on this understanding, it is much easier to do business together. For example, a company may have foundational moral values like diversity, mission, or environmental sustainability. A VC may communicate that they care about the same things. Like other intangible characteristics, a commitment to these values is best demonstrated through actions and prior public statements rather than passing private words.

Benefits

A VC may be able to get better deal terms or a larger allocation when a founder seeks a VC that matches their values.

Trade-offs

    1. This approach can backfire if it comes across as inauthentic, opportunistic or tone-deaf
    2. If the VC communicates a values commitment, then LPs may question if financial outcomes are still valued.

by Miles Lasater with Julian Jacobs