9 Ways a Venture Capitalist Can (and Should) Help Startup Founders After the Deal Is Closed

The opinions expressed by entrepreneurs contributors are their own.

Most people think of a venture capitalist as an investor who provides capital to startups in exchange for equity. But that's only partly true. generally looking for a high return on . However, this high performance will be difficult to achieve without mentorship, sharing of knowledge, resources and experience, and even without mental support.

Below, I'll outline nine ways an early-stage venture capitalist should help startup founders after the deal is closed, and these points are exactly what differentiates a great investor from a mediocre one. :

Related: What I Learned From the World's Greatest Venture Capitalist

1. Share mistakes

These VCs who are seasoned entrepreneurs and doers themselves bring their valuable experiences and problem-solving skills after overcoming obstacles in their own startups for years. But what is even more important is that if the founders only focus on one startup, the companies have invested in dozens, so they are able to inform the founders of the mistakes they have made in the past and the lessons they learned from those mistakes. . They can help founders avoid similar situations. So, keep in mind that founders become stronger by being around other entrepreneurs in the portfolio of .

2. Visibility and credibility

If you're a VC-backed startup, it means someone trusts you with their money. It is a criterion of credibility. Also, if you're a VC-backed B2B software startup for your enterprise clients, the fact that you've already raised funds means you're durable enough to fulfill the contract and have enough of a lead. It's also a good sign for banks if founders want to take out a loan – and it goes without saying that founders appear on the radar of growth-stage venture capital firms. They often follow the successes of their peers' portfolio companies. This is exactly the kind of visibility that entrepreneurs need.

3. Industrial expertise

Most have their funds focused on industry: B2B SaaS, , Creative, etc. This means that the VC team has seen hundreds of tech companies and most likely have worked in the area a given founder is currently building their startup in. So they have a wealth of knowledge to pass on to founders. In our venture capital firm, we have data-driven systems to monitor industry benchmarks, for example. Founders should not underestimate the benefits they can derive from such expertise.

Related: 9 Top Venture Capitalists Share Their Top Tips for Entrepreneurs

4. Board meetings

Having a seat on the board of a startup is common practice for early-stage VCs. Most board meetings are held quarterly, where the founding team shares metrics, results, and financial forecasts for the future. These meetings help both resolve operational issues and develop strategic plans. Experienced VCs often give expert advice on each of them.

5. Evaluation

Venture team members, being outsiders, provide third-party valuation of startups. They often ask questions and critically examine your plans, work, and execution. It's important for founders to listen to people interested in their growth, but not involved in day-to-day operations. The VC waits for the growth of the startup and therefore thinks strategically, which is why a VC might be the best advisor to open the founder's eyes to some major moves and not make small problems a big deal.

...