Remember that VCs are motivated by returning a big return to their LPs first. It...

msuster · on March 4, 2012

I definitely have never argued that all VCs are good or even that good VCs always act appropriately. That's for sure.

I think the key is knowing the parties with whom you're dealing and knowing their past behavior. I advocate reference checking portfolio companies that failed: see http://www.bothsidesofthetable.com/2010/02/08/how-do-you-ref...

jpdoctor · on March 4, 2012

> and knowing their [VCs'] past behavior

So given the complicated web of legal documents from the exits of folks that have been screwed over, how would you find the worst cases?

larrys · on March 4, 2012

"there are exceptions to the norm"

This is an analog situation. Things like this are a matter of degree not absolute. Just like speeding, insurance claims and taxes. Some people can definitely be trusted less than others to care at all about the other party. Those are the people that you need to identify.

newman314 · on March 4, 2012

Put differently, one hears many more stories about founders getting screwed by VCs as opposed to the inverse.