Beyond pre-seed, VCs usually meet members of your team as part of due diligence, often without you in the room. Founders should prepare them: explain the purpose of the meeting, what VCs want to hear, how to prepare and the key points of their messaging. Encourage team members to ask the VC questions, too.
In most cases, especially beyond pre-seed, VCs will want to meet members of your team as part of their due diligence. Virtually or very often in person.
Not only the C-Level, but depending on your team size either all or selected members of the wider team, sometimes even interns as they could be a great source for learning the truth :)
You and your team should be well prepared for this. Very often the VCs want to speak with your team members directly, without you participating in those meetings. This is what I as a VC always do.
You need to prepare your team members for the visit by:
1) Helping them understand the purpose of the meeting
2) Helping them understand what VCs want (to hear)
3) Letting them know how to prepare
4) Aligning on the key points of their messaging
To prepare in the best way, you should ask the VC first what they want to discuss with the team members so they can prepare for it. The latter is important: Don’t let the VC feel that you’re asking this question because you’re afraid they could ask questions that could lead to answers that are not good for you. Make clear that it’s just about helping your team members to prepare.
But never rely on what the VC will say. Every good VC will try to get out of the discussions what employees think of you as leaders, but most won’t let you know. The same applies to challenges your team members are seeing for your company.
You need to prepare and align well with all the team members who will have VC meetings. Don’t forget: You might be experienced in having conversations with VCs, but they most often aren’t. VCs are a mystic species for many of them, often leading to stress and fear when thinking about meeting and being grilled by them.
It’s your job to destress them, make them relax, and give them the support they need to get prepared for the meeting.
Let them know from your perspective what kind of questions they might expect from VCs and provide them with hints about how to navigate through the questions.
Pro tip: Encourage them to ask the VC questions, too.
Challenging questions are great! They elevate the position of your team member in the eyes of your VC and show strength in the wider team. Let your team members embrace the meeting as a networking chat amongst two interesting people, a chance to meet experienced VCs and get their perspectives, as opposed to seeing it as a stressful interview situation.
Frequently asked questions
Do VCs talk to employees during due diligence?
Yes. In most cases, especially beyond pre-seed, VCs want to meet members of the team, virtually or in person. Depending on team size this can include the wider team and sometimes even interns, often without the founder present.
How should founders prepare their team for a VC meeting?
Help them understand the purpose of the meeting and what VCs want to hear, let them know how to prepare, and align on the key points of their messaging. Share the kinds of questions they might expect and hints on how to handle them.
Should I ask the VC what they want to discuss with my team?
Yes, so your team members can prepare. Make clear that it is only about helping them prepare, and never rely fully on the answer, because good VCs also try to learn what employees think of the founders.
Should team members ask the VC questions?
Yes. Challenging questions elevate the team member in the eyes of the VC and show strength in the wider team. The meeting works better as a networking chat than as a stressful interview.
