Be an encourager
#CapitalAtRisk
The world is full of critics already
I wrote here earlier this week that it’s absolutely fine (and may be a great signal) if, after investing in a startup, you can’t really help the founder all that much. And, while you should never risk meddling or getting in the way, if you do want to help then here are some ideas of how to be an encourager1 to your portfolio:
Reply to investor update emails
If everyone thinks someone will reply then of course no one actually will. Founders take a lot of care with these emails and after hitting send it can feel like no one cares if they get nothing back.
There’ll probably (we hope!) be some good news in the update email so hit reply and say, “Well done! Great job!”.
If there are problems be supportive (more on this in a post later this week).
The ‘asks’ section will probably be related to helping solve those problems so if you can help or can connect someone good who might be able to help then do so.
And if you can’t help say so — at least the founder then knows that, for those particular problems, you can’t help so they can then narrow in on who can.
Finally, if the founder cc’s everyone then why not reply to all..?
Buy a product
I have D&D pyjamas, Seep tea-towels, Bearded Colonel razors and a what3words sign for my office door.
I can’t quite afford to holiday here just yet, but I’m looking forward to the day I can.
You can also do this to encourage and support startups you’re not invested in, e.g. I have some Hades Matte Paste in my hair right now — honestly the best product I’ve ever used!
Treat them to lunch
Time flies so schedule in a coffee or lunch at least once a quarter.
There needn’t be much of an agenda, you can just listen.
Then on the way home (and this is the really helpful bit) reflect on what the founder said and email some praise, ideas and encouragement.
Pay.
Send 10 things that the founder could try
Send ten ideas about the business to the founder. I first heard this from James Altucher years ago and it’s a terrific habit to get into.
It sounds really easy, but it’s a lot harder than you think. The first four or five ideas come quickly, but once you get to idea seven or eight you really have to start thinking hard (or at least I do).
It’s amazing how this simple thing can spark so much creativity — either the ideas themselves or what the founder thinks of when they read the list.
Remember, to have a good idea you just have to have lots more bad ones.
With much of this you might not get any thanks — certainly not publicly, so don’t do it for the praise.
Do it to encourage, uplift, motivate and contribute — I guarantee you’ll feel wonderful afterwards.
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
The quote, “Be an encourager the world is full of critics already” is attributed to Dave Willis.