Monday, May 21, 2007

Rating Venture Capitalists

I learned of a new website from a recent e-newsletter from ASBDC. It's called TheFunded.com, and it has a feature that comes at the need for venture capital from a different angle.

Since we frequently have clients who seek this kind of financing, the site is useful in that they can search for VC firms in their part of the country. They can also narrow their search by the size of funding being sought.

The results of their search, however, aren't simply contact information for the fund. In most cases, each firm will have written commentary by business owners who've had experience with them (usually a paragraph or so). Each firm gets rated (on a scale from 1 to 4, I believe), and the firm's rating appears prominently when the search results come in.

The site doesn't appear to have a function where you can search for firms that deal with a specific industry (we have a tool like that in the library). However, getting the feedback directly from those with past experience is valuable. Writing commentary is a condition for joining this site - it's not fee-based, but the comments on the quality of the VC firm are the heart of the site, and people are expected to contribute.

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