The document discusses how to properly understand a venture capitalist before entering a partnership with them. It uses the metaphor of "field dressing" or preparing a hunted animal. The four key steps discussed are: 1) Remove the heart to understand their fiduciary responsibilities limit personal investment; 2) Remove the stomach to set expectations for dealing with failure and adversity; 3) Remove the lungs to understand how their funding can sustain a business but also dilute the company over time; 4) Remove the brain to evaluate their experience and ability to add value rather than just money. The overall lesson is to thoroughly understand a potential investor's motivations and abilities before partnering with them.

1. “HOW TO ‘Field Dress’ a Venture Capitalist”
“Field dressing is the process of removing
the internal organs of hunted game, and is a
necessary step in preserving meat from
animals harvested in the wild.”
Source: http://en.wikipedia.org/wiki/Field_dressing_(hunting)
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

2. DISCLAIMER:
No Venture Capitalists
(VCs) were injured in the
creation of this
presentation.
Any resemblance of the
“patient” displayed to any
current, or past venture
capitalist, is purely
coincidental.
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

3. Your “Entrepreneurial Hunt” for funding is
done. You’ve “bagged” your venture
capitalist.
What can proper “field dressing” of your VC
tell you about the future entrepreneur/VC
relationship? Let’s examine the steps…
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

4. STEP ONE:
“REMOVE THE HEART”
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

5. DISCOVERED:
“LIMITED HEARTS”
 “VC Heart” is with “fiduciary
responsibility” to their investors
(limited partners).
 “Love” of investment strictly
based on company performance
(potential return to investors).
 Entrepreneurs are “replaceable”.
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

6. LESSON:
 VC investment an “engagement”
not necessarily a “marriage”.
 VC fiduciary responsibility
overrides anything else.
 Treat as business “relationship”,
not personal “friendship”; no “love”
here!
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

7. STEP TWO:
“REMOVE STOMACH”
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

8. DISCOVERED:
“WEAK STOMACHS”
 CAN’T always stomach FAILURE.
 CAN’T always stomach ADVERSITY.
 WON’T stomach INCOMPETENCE.
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

9. LESSON:
 Set expectations early on.
 Regular updates on business.
 Agree on ongoing business
measurement metrics.
 Plan on a “bumpy road”, (again)
set expectations accordingly
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

10. STEP THREE:
“REMOVE LUNGS”
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

11. DISCOVERED:
“LARGE LUNG CAPACITY”
 Large supply of oxygen ($).
 Can sustain business through
“bumps”.
 BUT: will expel lots of “Carbon-
Dioxide” or “Company-Dilution” over
time.
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

12. LESSON:
 Know your cash requirements.
 If follow-on funding required: try
to tie to business-related goals and
bumps in company valuation.
 Dilution is under your control.
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

13. STEP FOUR:
“REMOVE BRAIN”
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

14. DISCOVERED:
“VARIABLE BRAIN SIZE”
 VCs: some CREATE TRENDS, some
just follow.
 Some have “walked the walk” of
entrepreneurship; some just “talk
the talk”.
 Will they add value, or simply $ to
your business?
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

15. LESSON:
 DO YOUR DUE DILIGENCE on
perspective VCs.
 Check their “grey matter” prior
to relationship.
 When problems inevitably surface
with business: want a partner with
some wisdom in your market.
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

16. ULTIMATE LESSON
All lessons are applicable to venture capitalists, angel
investors or even friends and family, from which you may
fundraise a startup investment.
Know the “internal workings” or your investing source
and maintain a relationship that works for both
entrepreneur and investor.
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels

17. Who are the Tech Coast Angels?
Tech Coast Angels, www.techcoastangels.com, the largest angel investor
network in the United States, provides funding and guidance to more
early‐stage, high‐growth companies in Southern California than any other
investment group. Since its inception in 1997, TCA members have focused on
building valuable companies, personally invested more than $100M, and
helped portfolio companies attract more than $1B in additional capital, mostly
from venture capital firms.
TCA members give companies more than just capital; they also provide
counsel, mentoring and access to an extensive network of potential investors,
customers, strategic partners and management talent.
TCA has more than 300 members, including its venture capital affiliates, in five
networks in Los Angeles, Orange County, San Diego, Westlake/Santa Barbara
and the Inland Empire.
“How to ‘Field Dress’ a Venture Capitalist”
©2013 Tech Coast Angels