Entrepreneurship looks great . Sounds great. Reality check – it’s not what it looks like .
For the 1 successful entity created .. the many which has failed ( that’s a wrong word ) is
unknown and not countable ( many of the instances do not get reported).
And what is a failure today , can be a success tomorrow.
Entrepreneurship looks great. Sounds great. Reality check – it’s not what it looks like .
For the 1 successful entity created .. the many which has failed ( that’s a wrong word ) isunknown and not countable ( many of the instances do not get reported).
And what is a failure today , can be a success tomorrow.
Being prepared is the thing which founders can do and must do. This is easier said than done.Let me share an anecdote of a real case.
In one of the earlier investments which we had done, the cap table had marquee investors , apedigree founding team , and an ecosystem promising growth . However, over the next 2quarters, the rules in the ecosystem changed, regulatory. And what was promising becamenon- existent.
Majority would have folded ( easy way out ). This team was prepared , worked alongside ,accepting the new changes . And instead of a new fund raise in the next 18 months , it tookdouble the time to raise fresh capital and got a few more marquee investors and grants .Adapted the business, without compromising on the mission and vision.
Investors are happy that the investment is still in the green.
Let’s give a thought to the health of this team – more precisely to the mental health . This is asubject, which we do not talk about or enquire . As investors , we talk about KPI’s , ROI,CAC, and all such related matters.
Did the team survive – Yes. The team was mentally strong and as Investors, besides thefinancial metrics, it was important to tell the team that we believe in you . Take care of yourhealth ..feel free to voice your thoughts, without guarding your speech or thoughts . As wetalk more and with different voices , one can get more clarity .
What about the instances where the founding team is of only 2-3 young 20’s graduates,wanting to make a mark . And the upheavals of the year 2020 strike you.
The pressure to scale the business which was always there , now has turned into stay put.How to answer the investors, what to say , how to say , how much to say.
As investors ,we always recommend and tell the portfolio companies to share as is .Transparent communication has helped . The business today has pivoted , revenue growth inplace .
But the tough moments are the ones , which helped the founders to navigate .
With increasing pressure – investors , peers, ecosystem , the most abused part is mentalhealth.
As scale happens in the business , it’s natural for the founders to have differences of opinion .This is another area, which needs to be addressed and looked into.
Again , the competency and capacity of the founders can differ , as the businesses grow.Having honest communication with the stakeholders is the key.
Having a coach , as you scale the business , is one area which needs to be looked into , as asupport mechanism .
As it is said – it’s all in the mind and the mind needs to be in healthy shape.
