How to Identify Toxic Venture Capital Investors | 10 Signs

A toxic venture capital investor can destroy your business.
Surprised? Don't be.
Often, there are conflicts beyond the typical Agency Problem, where a VC will make decisions that can irreparably damage a startup due to inexperience, ignorance, ego and/or incompetence.
In startupland, we often focus on how venture capital funds do their due diligence on startups, but rarely discuss how a startup should do their diligence on potential investors.
In this video, I identify 10 signs you may be dealing with a toxic investor. The more signs you witness, the greater the likelihood you are dealing with a toxic VC.
Its critical that startup founders learn to identify and avoid these toxic investors to maximize their ability to succeed.
00:00 Intro
01:46 1st sign - taking long to complete diligence
02:12 2nd sign - they charge you fees
02:45 3rd sign - they ask for non market terms
03:30 4th sign - constantly change investment terms
04:20 5th sign - reluctant to offer references
05:04 6th sign - no track record of working with other VCs
05:38 7th sign - they don't have a fund
06:57 8th sign - they rebranded multiple times
07:07 9th sign - they have a big ego
07:43 10th sign - you don't like them

[@jasonweiss8312]

great points man. nice to see a VC being honest about other VC's and their problems/challenges to startups.

[@MatanHazanov]

Appreciate it!

[@HHLitigationServices]

The speaker is very knowledgeable!

[@MatanHazanov]

Thanks!

[@EdenKorsia]

crazy production quality

[@MatanHazanov]

Thanks! I continue experimenting with each new video.

[@user-ui9bj8yt2e]

👍🏻