Subscribe Ask the Editors Search Entire site SmallBizSearch Msg. Venture capitalists want to take control of my company. Most VCs want a fair portion of the company in return for their capital, but don't consider control unless your management team fails.
Venture capitalists load their deals with unfair terms.
Some terms may seem unusual or unfair to an entrepreneur. For example, there may be a provision requiring the company to redeem investors' stock at a certain price after a certain period. Keep in mind that such a redemption represents a failure on the part of the VC, which will do everything possible to avoid taking this step. Venture capitalists are only interested in numbers. VCs with finance backgrounds may want to dig into numbers.