Included in the guidelines for dealing with venture capitalists,the entrepreneur should:

Question

Quizplus · Accepted Answer

It is important for the entrepreneur to be transparent and disclose any significant problems or challenges the business may be facing in the initial meeting with the venture capitalist. This demonstrates honesty and trustworthiness, which is essential when seeking investment. Approaching the venture capitalist directly (A) may not always be the best approach, as it is important to have a well-prepared and well-researched pitch. Bringing a lawyer to all meetings (B) can be seen as adversarial and may create a tense atmosphere, unless it is absolutely necessary. Assuring the venture capitalist that "There is no competition for this product" (D) shows a lack of understanding of the market and competition, which can be a red flag for investors.

Included in the Guidelines for Dealing with Venture Capitalists,the Entrepreneur