Care and Feeding

Young companies are a bit like children. They require care and feeding.

The feeding part comes naturally to investors. Because that is what we do. We invest capital into young companies in hope of generating large returns on those investments.

The caring part comes harder to investors. At least it did to this investor.

But as I enter my fourth decade in venture investing, it is the caring that keeps me going.

Caring is exactly what it sounds like. Giving a shit. Actually caring about the company, the team, and the business.

The thing about caring, when done right, is that it means everything to the founders, the managers, and the team.

They feel it, more than you think possible.

And that allows you to encourage them to adjust their thinking, their plans, their team.

I have found that feeding doesn’t change behavior very much. It works well in the short run (do this and we will invest more money). But it doesn’t work very well in the long run.

Caring, on the other hand, has immense power to bring positive change.

I see this every day. And it encourages me to care even more.