Jeffrey Bussgang venture capitalist and General Partner Flybridge Capital Partners and former entrepreneur
Entrepreneurs should consider the following when selecting a VC: “ [industry knowledge],  geographic presence and strategy],  [the stage the VC specializes in],[fund size], [where the firm is in its fund life cycle] and  willing[ness] to continue  support  in a follow-on round and  [criteria for same].”
The VC should provide entrepreneurs value in: “ 1. strategy 2. recruiting 3. business development [  including introductions to prospective partners, customers and acquirers]; and 4. future financing.”
Future financing issues include “ whether the follow-on round should be an “inside round” [all current investors], or an “outside round”  led by an outside investor .” An inside round might be easier to raise but an outside round provides another financing source and can validate a new valuation. “[Entrepreneurs should discuss with the VC the next round the day after closing the first round] including “ [if milestones are met, will VC support continue and if so, at what price (valuation) increase]; [if milestones are exceeded or missed by say 20%, respectively, then the impact thereof.]” “[Normal tension exists around price]”, so entrepreneurs might check outside the investor group to substantiate market price and terms.
Chemistry with a VC is essential. “ the real emphasis on chemistry concerns the thinking styles, ways of working, enthusiasm for the business and a shared view of the future. You want  someone  you can work with and  trust.” Jeffrey Bussgang, Jeffrey Bussgang’s book Mastering the VC Game –A VC Insider Reveals How to get from Start-up to IPO on your Terms. copyright 2010, pg 111,113,118, 120, 122, 123