13/52: F.E.A.R.
#CapitalAtRisk
The 2010s was the decade of the Entrepreneur.
The 2020s will be the decade of the Investor.
“If everything you believe is something you’re supposed to believe, could that possibly be a coincidence? Odds are it isn’t. Odds are you just think whatever you’re told”
For everything a reason
“I like this! Would love to read your take on it”
What Paul says happens, above, is so common because it’s so easy. After all, the list of reasons why a startup won’t work is very long, and the list of reasons why it might succeed is pretty short. But who wants easy?1
Poking holes in a founder’s idea is so damn annoying. I messaged Hector straight back:
A timely purchase
When I got Hector’s message I was up in Northumberland2 — I grew up near Alnwick and still have family there and on various farms nearby. Alnwick is still rather lovely but has developed a lot since I went to school there — in my day there were two fish & chip shops, two small supermarkets and a post office, but now the town has a Starbucks, an M&S and even a McDonald’s!
It also has three bookshops…
A few minutes after getting the WhatsApp message from Hector I happened to read the following in a book I’d just bought that afternoon. I also sent the following photo over to Hector:
That book is The 50th Law by 50 Cent and Robert Greene.
Why are investors so fearful?
I’m not sure why investors are so keen to show off how clever they are. Actually, I think I do — it’s because of fear.
Why are they frightened of showing a bit of vulnerability? Perhaps they think because they’ve had a bit of success and made a bit of money (so they can be investors, great!) that they have to appear smart and successful at everything from that point on.
Trouble is, when you’re unwilling to show vulnerability you become more vulnerable; to ignorance, weakness and a lack of opportunities to learn.
What can release you from fear?
A few things. One, according to Robert Greene, is if something tragic or life-threatening has happened to you then there’s not much else to be scared of. For 50 Cent that was being shot nine times and surviving just before his debut album came out — after that he knew he needn’t fear any corporate shenanigans, so if a deal wasn’t right he’d walk away. That brought a lot of confidence and power.
You don’t have to experience being shot to have this mindset — life is tough and the inevitable result of living for a few decades means that you’ll likely be truly tested. Laura Harnett spoke about that to the FT here in 2023: A breast cancer scare gave her a fresh perspective on life, “I just lost the fear” she said.
Another way to lose a bit of fear could be to not worry about appearing a bit daft or slow. Or rather, believing that getting to the truth is more important than being right, or appearing smart.
In this post from the end of 2020 I wrote:
“Part of building a long term relationship with someone is to get to know the real person. And you can allow them to get to know the real you.
Investors think they have to be super-smart and super-quick. But if I am a non-investor then I don’t have to be. What that does is that it allows me to ask daft questions like a genuinely interested, ‘I-want-to-be-helpful’ person and not an ‘I-need-to-appear-smart’ person. One of the best things you can say when being pitched is, ‘Hang on a sec — run that by me again…’”
I’m a big fan of Robert’s books — I have them all, including the special edition of The 48 Laws of Power — but I reckon The 50th Law could be his best. I was so keen to listen to it on the drive south that it’s the first and only audiobook I’ve ever bought.
There’ll be wobbles, I’m sure, but reading The 50th Law has already made me stronger. Even in the last week, when I’ve been a little anxious about something, I ask myself, “Is this coming from a place of fear?”.
It likely is, so having had my own challenges here & there, I know that it won’t be as bad as those, and certainly not as bad as Fifty’s.
In other News
🎧 I was on Leah Brown’s ‘The Longest Day’ podcast, my episode is here. I talk about my Durham University interview as a mature student aged 27, how I didn’t want to blow the opportunity but thought I actually might have.
😇 SearchSmartly, one of my portfolio companies, is raising a round of funding. I invested in 2022 and obviously like Taha Dar, the Founder & CEO. Taha is an ex-Red Bull Formula 1 engineer (so no slouch!) and has built the AI from scratch and shown he’s able to close worldwide sales deals. If you’re in the zone for investing and keen to hear more just hit reply.
🏖️ And while it wasn’t quite like that emoji, I was on the beach in Northumberland, had a proper break while the kids were off school and so I feel rather refreshed and ready for the rest of Q2 & Q3. Remember if you’re a subscriber you get my WhatsApp number to ask me anything and if you’re a Foundering Member I’ll take you for a very posh lunch! 🍽️
More from me?
If you like my writing you can get more by buying my book, ‘Find your 9others’. It’s on Amazon here.
And if you’ve already read ‘Find your 9others’ please leave an Amazon review here.
Q&A
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Important: None of these posts are investment advice. If you are thinking about investing you should seek the advice of a suitably qualified independent advisor.
#CapitalAtRisk
Stay tuned for a post later this week on why investing is hard, and should be hard.