I think it’s important they “get” your product and have bought into your vision. Like Peter said, you want someone who has solved the problems you’re having before and can help you do the same. They should be able to intro you to people you should …

Unless of course if you get diluted to crap, then it’s still money, just not yours anymore.

Terms are more important than investor value-add.

If you have the luxury of choosing between smart and dumb money, you’re 15 steps ahead of the curve.

I am of the opinion that success of startups has a lot to do with luck and the definition of luck is the absence of bad luck.

I am also of the opinion that money is money and the absence of dumbness makes any money smart money.

So in that sense, I agree with the article and particularly the comment from Marc Andreessen.

Take the money, treat it as the last inventor money that you ever going to have and ever going to want, build the company and avoid all manner of dumbness, then at the end of the day, declare success and thank your investors for their smartness.

I have recently wrote about my own mistakes in dealing with investors which I entitled “How to turn your VC into your worst enemy”. It is my sincere hope that it is useful for other readers as well.

http://www.lovemytool.com/blog/2007/10/vc-worst-enemy.html

–Denny–

Denny K Miu