The One Line That Will Kill Your VC Round Before It Starts
Why offering “2–3% commission” to a VC employee is not just a bad look — it’s a reputational red flag.
Raising capital is hard. Founders hustle, push, pitch, follow up, and follow up again.
But in that grind, there’s one line I keep hearing — and every time I do, it’s an instant deal-killer:
“If you can help me raise this round, I’ll give you 2–3% of the money.”
This may sound like hustle. It may even feel generous. But if you say this to anyone working in VC — especially someone at the analyst, associate, or principal level — you’re done.
Not because the amount is wrong. Not because VCs are allergic to compensation.
But because this one sentence reveals everything investors fear in a founder:
transactional mindset, poor judgment, and a willingness to cut corners.
Let’s break this down with numbers, logic, and industry context most founders never hear.
VC Is a Trust Network, Not a Commission Game
Venture is not a sales job. It’s not a brokering gig.
It’s a relationship business where reputation compounds.
The people you’re speaking to — even at the junior level — are not gatekeepers.
They’re conviction builders. They drive deals into partner meetings. They run diligence.
They sit on IC calls. They support portfolio companies post-close. They report to LPs.
So when you say, “I’ll give you 3%,” what they hear is:
“I want you to risk your credibility for a short-term payout.”
No one in VC does that.
The Numbers: Why VC Is So Relationship-Driven
To understand why this line lands poorly, look at how rare VC roles actually are:
In the entire MENA region, fewer than 10 analyst or associate roles open per year — across funds managing $2B+ in AUM
In the UK, maybe 15–20 junior roles open per year, across the entire market
In Europe, junior roles are few and far between — and most require 3–5 years of consulting, IB, or operating experience
Even more important:
Almost no one gets hired without a warm intro.
There are no formal job boards. No resume funnels. Just networks, trust, and reputation.
Once You’re In, You’re All In
Unlike consulting or banking, VC is not a "rotational" industry.
You don’t join, try a few things, then leave.
In a typical VC role, even at the analyst level, after 90 days you’ve already:
Taken 100-150 founder calls
Run diligence on 5–6 startups
Touched 2–3 live deals
Built relationships with 10+ portfolio companies
Sat in IC discussions and deal memos
Had 1,000+ data points flowing through your head
These relationships are equity.
These conversations are trust deposits.
These insights can’t be “packed up” and taken somewhere else.
So when a founder says, “I’ll give you 2%,” they’re not just making a bad offer —
they’re fundamentally misunderstanding the VC role.
The Math Doesn’t Even Make Sense
Let’s get tactical. Say you're raising $500K and you offer 2%.
That’s $10,000.
Now consider what it takes to actually get a deal across the finish line:
Dozens of calls
Diligence
Memos
Portfolio alignment
Backchannel references
Conviction building
Partner push
Deal terms
Legal/ops
Post-investment onboarding
That’s a minimum of 100–150 hours.
You’re asking someone to work for $66/hour — while risking their reputation and network.
Meanwhile, VC scouts (who only source and don’t do diligence) get flat $10–25K per deal.
You’re offering less money, for more work, and more risk.
That’s not just a bad offer. It’s insulting to someone who understands how venture works.
What It Says About You as a Founder
This isn’t about money. It’s about behavior.
When you offer a junior VC a percentage to push your deal, here’s what you’re signaling:
“I don’t really understand venture capital.”
“I think of you as a broker, not a long-term partner.”
“I’m okay doing whatever it takes to get the round done.”
“I might compromise in other areas of the company too — cap table, product, hiring.”
Founders are judged by how they behave under pressure.
If money makes you compromise now, what happens at Series A? Series B?
The investors you want on your cap table are the ones who value integrity, clarity, and judgment — especially at the early stage.
So What Should You Do Instead?
If you’re trying to raise — or build VC relationships — here’s what actually works:
Build early, warm relationships before you need capital
Ask for honest feedback, not favors
Keep people updated with structured progress
Focus on traction and clarity, not commissions
Respect the role of junior investors — they’re deal shapers, not deal brokers
Remember: VC is a small world.
The way you treat an analyst today echoes in the boardroom tomorrow.
Final Thought
The founders who win in VC aren’t the ones with the flashiest decks.
They’re the ones who understand the game they’re playing.
Don’t trade your integrity for a check.
Don’t try to buy someone’s credibility with 2%.
And don’t forget: the market remembers how you raise — not just that you raised.
If this helped, consider forwarding it to a founder who’s about to fundraise.
It might save them from saying the one line that could quietly ruin their round.