|
The Entrepreneur’s Bill of Rights |
The Venture Capitalist’s Bill of Rights |
| Article 1 |
The right to own 50% or more of his/her company |
The right to make large returns |
| Article 2 |
The right to take only as much money as needed |
The right to allocate our time to where we can generate the largest returns for our customers |
| Article 3 |
The right to get something in addition to money from your investors |
The right to be engaged with your portfolio company to understand and be consulted on strategic issues and options |
| Article 4 |
The right to insist that your investors stand behind you in later rounds |
The right not to have your money pissed away |
| Article 5 |
The right of the founder to remain CEO |
The right to replace the CEO for not getting the job done |
| Article 6 |
The right to make decisions and run your business |
The right to hold management accountable for building value in a timely and measurable manner |
| Article 7 |
The right to a two-way dialogue |
The right to hear the truth as soon as it becomes known – clearly, directly and without spin. |
| Article 8 |
The right to say when you exit |
The right to achieve a timely exit |
| Article 9 |
The right to protect your investment |
The right to protect your investment |
Well, this pretty much sums up the dilemma. As an ex-entrepreneur now VC, I would only add that the physical world still follows certain laws (Newtonian physics, thermodynamics, supply and demand, etc.), one of which is the Golden Rule of Venture Capital – “he who has the gold, makes the rules”.
Entrepreneurs always have the “right” to fund their companies with non-venture money. They can certainly maintain more % ownership that way.
[...] The Funding Bill of Rights [...]