Is that because founders (often) come from technical backgrounds and don’t have business acumen?
What about the relationship between the investor and the entrepreneur, are they surprised how the relationship changes after they close funding? It all depends on the personality of the partners who run that fund. Personally, I don’t want to run your business, but there are investors who are constantly in your face, or worse. What I say to founders is ‘do your research’ in terms of who is behind the fund. Here’s an example: for a recent deal we trying to do we gave them the names of 6 of our company founders – two of which we fired! We said, ‘call them’. Find out how we work with them—even the ones we let go. Do the reference checks on us rather than us doing the reference check on (you).
