Why It Pays to Go Steady With a Venture Capitalist

Keep your friends close. And keep your VC closer.

That’s part of what’s enabled Robert Langer, a scientist at MIT, to get so many of his ideas financed commercially. As Rebecca Buckman describes in her story today, Mr. Langer and his friend and business partner, Terry McGuire of Polaris Venture Partners, have launched 13 companies in the past 15 years and become a model for others racing to commercialize their new drug and medical-device research.

The relationship gives Polaris first dibs on cutting-edge medical technology developed in Mr. Langer’s labs. It also gives Mr. Langer an inside track to funding and a trusted partner to lean on while he’s fine-tuning his ideas.

That’s like gold for an entrepreneur, particularly an academic one unaccustomed to the fast-paced networking needed as a start-up. Health start-ups typically boast complicated technology that requires a trusted financial partner with patience and an understanding of the science.

Of course the majority of enterpreneurs don’t have the luxury of being able to choose among several VC suitors. A broader movement is afoot to connect entrepreneurs, particularly those outside the tech world, with like-minded financiers. Several online tools and regional programs are working toward that goal. And more VCs are looking to back companies whose founders they know personally.

Many savvy serial entrepreneurs wind up forging deep relationships with their initial venture backers and return to them on their second and third venture. It’s smart business in a time where capital markets have slowed for start-ups. Having one real “VC friend” in your hand to help ride out the wait is worth several acquaintances in the bushes.

What’s been the best (or worst) relationship you’ve ever had with a venture capitalist? Or if you’re a VC, do you prefer working with entrepreneurs you have a track record with?

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