VENTURE CAPITAL INVESTORS Don’t kid your self. Investors matter. Investor person

VENTURE CAPITAL INVESTORS

Don’t kid your self. Investors matter. Investor personality matters more. Investor strategy regarding exit matters more. Investor’s funding source stability more so. They will always think they are smarter than you are for the simple reason that they have to. They aren’t. They are however, better at insuring you against failure. The simple act of keeping them informed so that they know your progress, while performing such that they don’t feel the need to ‘interfere’ is the way to use their insurance value to insure you maintain the right behavior. In every company I’ve NOT bought the central problem has been trying to expand too early so that the hard work of interacting with customers is offloaded so that the team can ‘masturbate’ by working internally rather than working with customers and constantly adapting the organization to those customers. In every company I have bought, the opposite is true: they are constantly focused on customers and they real problem is that they underinvest in sales and marketing.