Venture capitalists also like this vehicle because it helps improve their return on investment as well. Price is by no means the most important factor in choosing a venture lessor. Ask for reference CEOs of difficult accounts to learn how the lessor reacts in tough times. Talk with other portfolio CFOs to find out how flexible the firm is in accommodating special service needs. And again, rely on your venture board members to advise you concerning who has built a sustained reputation for patience in the start-up community.
Corporate investors represent a double-edged sword to small companies.
They can bring great resources to bear. Venture capitalists only have one agenda in their investing, the maximization of stock value. That happens to be the same agenda as the company's founders. Corporate investors usually have a more complex and less compatible agenda in mind. The people making initial investment frequently change jobs and the relationship with the company can fall hostage to corporate politics.