David Cohen of Techstars advises founders to request references from a VC's failed investments. This reveals how an investor behaves during difficult times, providing a more honest assessment of their character and support level than speaking only with successful founders.
David Cohen reveals that some savvy LPs investigate a General Partner's personal life, such as their marriage. While seemingly invasive, this is a strategic move to gauge stability and de-risk their investment, as significant personal disruptions can detract from a GP's focus and fund performance.
Lara Banks suggests that emerging fund managers should proactively ask LPs about their specific criteria for success. This conversation aligns expectations early, clarifies performance benchmarks for future funds, and prevents misalignment between the GP's strategy and the LP's evaluation framework.