Bzzagent Response

After careful examination of the article, I believe that Dave Balter should choose to take the investment from Firm A. It is very uncommon in the Venture Capital industry for the entrepreneur and his company to send their own tailor-made term sheet to investors, let alone have them agree to it unconditionally. The fact that so many firms did so is a testament to the fortitude of BzzAgent. 

BzzAgent has the unique opportunity to sort through 11 VC firms that would love to invest in their business. It is up to them to determine which of them would be the best fit for them and their company on a chemistry level. Balter explains how “chemistry was important to ensure we could work well together – this type of relationship is often like a marriage, so we wanted it to be a good one.” This being said, the investor that they choose is to be more than just an investor, they want them to become partners. It is important that they truly care about the company and the path that they go on, ranging from the smallest to biggest decisions.

BzzAgent was very wise to have created a ranking criterion as they measure the desirability of each potential investing firm. Among the most important to them is effort, chemistry, expertise, cachet, and value added. The top three firms (A, B, and C) all ranked very closely and each had very lucrative incentives to taking their investments. However, it became clear reading through the article that Firm A is the best decision for Balter and his team.

Although they Firm A doesn’t quite have the ideal track record as a VC firm being a fairly new company, in nearly every other category they received a perfect score. Additionally, they felt a strong connection with the general partners and believed they would be excellent boardroom allies and not adversaries. They were honest, direct and respectful – exactly what Balter is looking for. Furthermore, they also agreed to their term sheet unconditionally, making them