Wie man mit Investoren kommunizieren sollte [ENG] | #Investoren 💰

00:00:00: Hello and a warm welcome to new episode of Inside We See, the podcast from Digital Compact dealing with venture capital.

00:00:06: And investors!

00:00:07: With me I'm.

00:00:08: Joel Kaczmaik is also Christian.

00:00:09: hello Christian.

00:00:10: Hi Joel

00:00:11: maybe one sentence about you for all those who missed the first two episodes of our podcast?

00:00:15: Yes i am general partner with eVentures and we're a venture capital firm that's investing in consumer internet software companies pretty much across a number of continents, but I look after the European business.

00:00:26: Today our topic is communication!

00:00:33: We're doing a podcast and afterwards we were talking about communication.

00:00:37: He said, you know it's often so hard to communicate as a VC because most of the time You send out passes passing people telling them that you won't invest in them.

00:00:46: So this is why I thought about how do a VC communicate?

00:00:49: And How does they start up?

00:00:51: ideally should communicate with the VC.

00:00:53: probably doesn't make sense To separate pre-VC phase and during the investment.

00:00:59: Let's Start With before meeting investor or Before Doing an Investment.

00:01:02: Together said something about first contact already in our first episode, but maybe let's say the top three things.

00:01:08: you would recommend a young founder or may be also an experienced one when dealing with the VC.

00:01:12: How do you communicate before knowing your VC?

00:01:14: Generally I think that best way to get in touch is of all avoid sending cold emails to the info ad address or anything of that sort.

00:01:24: And try and get some kind of intro, a typical way that's often recommended is to go through an entrepreneur That's already backed by this particular VC you want to talk too?

00:01:34: Or Some other acquaintance or person You can identify who has A personal relationship with The investor you wanna Get To.

00:01:41: if that Is difficult then if you do approach somebody cold, at the very least try and tailor your approach whether it's email or phone whatever to that person by saying look we're doing this in that.

00:01:53: And we noticed you have invested In companies X Y Z and here is why believe Then you should also be interested in us.

00:02:02: so If you can't get there on a personal way than try and tailor it as much as you can.

00:02:07: I guess there are dozens of articles telling about how do i do this year?

00:02:11: Do not send ten megabyte attachments, maybe this has changed by now because thanks to google mail.

00:02:16: but let's go a little bit deeper.

00:02:18: first meeting Let say the VC reacted to your first communication says okay lets have a meeting.

00:02:23: what is expected in this meeting?

00:02:25: What do I show And How do I act

00:02:26: ?

00:02:26: What You wanna get out Of The First Meeting Is To Get The VC Excited About You In The Business You Wanna Create.

00:02:35: So you want to not bombard the investor with too many facts and details about what you're going to do.

00:02:43: But, You wanna make sure that you get through your entire pitch And have a chance to paint the complete picture of What market are we gonna address?

00:02:52: Why I think it's interesting?

00:02:54: What specifically doing?

00:02:55: how its differentiated How can become great business?

00:02:59: And why u think U & Your Team Are The Right People To Do That.

00:03:04: It's important that you get through all of this, so your aren't stuck on slide number two for most the meeting and can really deliver sort-of this entire message.

00:03:14: Once you have the VC excited... ...and generally interested in your space.. ..in your market or value proposition then you can go into detail with follow up meetings.

00:03:25: But really, the purpose of this first meeting is to create appetite into what you're doing.

00:03:29: Does

00:03:30: it differ by the way from level I approach?

00:03:33: If there's an associate sitting next me or a partner does that make any difference how they communicate?

00:03:38: The key thing in getting a sense for who knows my market segment and type of company i'm running.

00:03:49: you have to tailor your pitch in the right way, so that somebody who is very familiar because he might've co-investments and adjacent segments doesn't get bored.

00:03:58: And then they'll have speed up really getting a little deeper.

00:04:02: or if it's someone whose feel there isn't too much prior exposure on their specific field than stay at high level paint great picture maybe spend more time explaining why this particular market generally interesting.

00:04:17: I'm not sure this differs between partner and associate.

00:04:37: to meet with associates first because if you think about it, the partners have usually... If they've been with a firm for a long time.

00:04:45: A large portfolio that they have to look after and The biggest risk To getting a deal done is maintaining Full attention from whoever's championing You.

00:05:00: A transaction in his portfolio, a company that's being sold or just problems and one of its portfolio companies are quite significant.

00:05:10: If you have an associate the associate is typically more focused on sourcing... ...more focus on getting deals to the finish line.

00:05:16: so if you get that particular person excited at least.. ..the risk of attention fading away usually much smaller.

00:05:23: You could argue it not be the ultimate decision maker but even partner has to convince his other partners.

00:05:29: And getting an associate to really like what you're doing and constantly push you, position inside the partnership can be very valuable in at least as good a way of going directly with your partner.

00:05:42: What would you recommend for follow-up then?

00:05:43: Let's say first meeting went well.

00:05:46: General interest is there.

00:05:47: Usually I witness that the partner or person sitting here takes this topic into some kind of meetings with all their partners, associates and venture partners.

00:05:58: But from a founder's perspective, how do I behave after this first meeting?

00:06:01: What is the ideal way of following up?

00:06:03: or does this happen?

00:06:03: naturally that the VC coming like don't call us.

00:06:06: We called you.

00:06:06: well

00:06:07: The first sort of almost trivial point but it never less important Is that you ideally define some next steps in the meeting already so You decide on when are you going to hear back from the VC and Are you supposed to call them out here maybe even setting up a call Or you know if he gonna call you?

00:06:24: That's the most basic thing to Do.

00:06:26: What I find stunning is that, unfortunately things get lost between the cracks.

00:06:32: And so I have actually started to tell people in the meeting, specifically get on my nerves if i'm not coming back because you want that and it's... You're surprised by how some people feel like oh he hasn't responded.

00:06:58: He hasn't come back So he is probably not interested.

00:07:01: No go for it.

00:07:02: push them into a situation where they say no Because you will never have first meetings or very rarely where people tell you, we don't like your business.

00:07:12: We're not going to

00:07:12: invest.".

00:07:13: You are always gonna get a positive supportive non-committal message and so you gotta bring people into position whether they either tell you no and you want hear it from them?

00:07:23: Or yeah then have two.

00:07:25: come up with next steps.

00:07:26: but if people dont go back do make sure followup call them.

00:07:30: obviously after three phone calls at some point maybe the messages clear get to that point.

00:07:36: I mean, as you said this aspect with being non-committal... ...I had the impression a lot of founders tell me... ...you know, AVC usually doesn't say no.

00:07:43: they always say maybe or yeah let's talk as soon as you have numbers.. ..or as soon it is taken investor interested.

00:07:49: so they try and keep their door open in a way but usually there not interested but afraid saying NO!

00:07:55: Another way to look at it is AVC always tries to keep its options open.

00:08:00: That can be number for reasons.

00:08:01: one is.

00:08:02: then you say, first of all I don't have time right now.

00:08:06: If a few other things on my desk... ...I think this is generally interesting but i cannot prioritize it enough to kind really drive into the decision right now.

00:08:14: so than want keep your options open So we can potentially get back.

00:08:17: that's one thing and sort of closest timeframe.

00:08:21: The other thing is you say, well it sounds interesting but I'm not completely convinced.

00:08:27: Maybe i talk to some of my partners whatever and then maybe get convinced or ask people on the market You want kind keep a little bit warm so that have opportunity.

00:08:37: come back once may be more convince.

00:08:40: this as good investment.

00:08:41: Third thing is more midterm aspect which very valid where This is maybe too early for us because you're more a series A investor and this is the seed company.

00:08:52: You say, I like to come back to this?

00:08:54: I'd like to stay in touch but right now it's too

00:08:57: early.".

00:08:57: And that makes sense also when we do come back as an investor... ...you have the benefit of showing what you've done since last meeting….

00:09:05: …and then we always tell them they get a movie instead of pictures.

00:09:08: as investors.

00:09:09: Assuming their company has more or less delivered... on what they have promised in the initial meeting.

00:09:14: Usually,

00:09:14: does it happen that I meet an investor and during let's say three months... ...I have an investment or do not have one because quite a few founders I spoke to said.. ..'I was talking with my investors for three years'.

00:09:25: And then we found a situation where it did make sense for them to invest… …and made sense of us take up

00:09:30: money.".

00:09:30: Yeah!

00:09:30: But still i think this is the exception.

00:09:33: so if you look at our portfolio.

00:09:36: We have one or two of these cases where companies were bootstrapped for quite some time and so on, then at some point it was the right time to invest.

00:09:42: but most I think it's becoming less and less of this.

00:09:55: You've been around as a company, at some point is the right time for investment just because you have more founders now who go out with a mindset of raising capital.

00:10:03: so The usual times spent between first contact and signature under the contract Is like four to six months or what would you say?

00:10:09: No i think its shorter.

00:10:11: A regular process I would say about three month on average.

00:10:15: if you have mastered the art It can be shorted in few days you know, if there's something that puts pressure on the investors it can be really short.

00:10:24: But I would say a regular process takes about three months.

00:10:26: If you think of how to make sure you become top-of-the-stack for an investor working with you is more important than doing other things in his day.

00:10:37: It's about reshuffling the priorities of the VC.

00:10:40: Let us assume your received a yes.

00:10:42: One investor is interested maybe.

00:10:44: second and third one How do I communicate if there's kind of a triangle of interests like many different actors, let say two to four or three to five?

00:10:54: how Do i communicate?

00:10:54: because one of these guys wants a liquidation preference that is little harder.

00:10:59: the other One tries to work on the valuation.

00:11:01: You have term sheets for That obviously but what would you recommend?

00:11:05: how To communicate with more investors that are interested

00:11:07: More than one?

00:11:08: The biggest question you Have to answer is when do you merge the processes?

00:11:13: So because typically, we want to have these conversations separate from each other until you get them two a yes and either a yes with a term sheet or at least an oral Yes.

00:11:24: And then you have to merge the threads and figure out who can be a lead Who could be a follower in who fits together as who.

00:11:31: maybe You try inform let's say two syndicates Two options but when you do that?

00:11:38: because the moment you have two investors talking about opportunity, first of all take out competition.

00:11:45: Because less people are now independently vying to deal and second one might come up with things which actually reduce the conviction on other.

00:11:54: they may kind-of concerns get bigger as talk each other want.

00:11:59: be very careful not too early on, merge those communication threads but really wait until you have sort of a firm yes and it's only about optimizing the terms.

00:12:10: And then ideally you set the terms with lead.

00:12:15: Are you in at these terms?

00:12:19: How about the other way, if your received a no.

00:12:21: If you've been passed?

00:12:22: That's actually what I was talking with Christian Nagel.

00:12:24: He said it is always tough deal for VC If i know that they won't invest in company.

00:12:29: how do we communicate them?

00:12:31: What are ideal ways For an investor to deal With A No And for startup or founder To Deal With

00:12:37: The No From investors perspective As simple as sounds First of all getting back In first place Is important and providing some level of feedback.

00:12:48: I think if it's something where you've only received the business plan and you determine based on that, that is not a fit.

00:12:55: You can't expect detailed analysis from an investor.

00:12:58: What are going to hear?

00:12:59: It isn't for portfolio or right stage.

00:13:03: Then there will be little point in trying to argue about why specifically it should be a fit because you have to assume hundreds of business plans coming And there is an initial screening, and if for whatever reason that you may not be aware of.

00:13:19: You don't make it across the screening It's hard to start arguing in detail.

00:13:23: now.

00:13:23: its different when we've had a meeting I think.

00:13:25: When you have a meeting or at least an extended phone conversation i Think what should expect from the VCs?

00:13:31: To give some reasons Some high level items.

00:13:34: That are atleast what I try do In terms Of why this is not fit Because I wouldn't Have invested The time to have A meeting Or call If didn't think it was generally interesting right?

00:13:43: So you want to ask for those two, three high-level items and I think the VC should provide them.

00:13:49: Even then though i wouldn't overly start arguing with it as an entrepreneur because...I always expect the entrepreneurs to disagree with me otherwise they would not be running their company.

00:14:03: so its natural that they disagree with you, but you don't want to have a discussion about who's right or wrong because at the end of day early stage investing is it as matter of faith and conviction.

00:14:16: It's not black-and-white so I think its good just take it their way maybe point out if there are obvious flaws in reasoning or misunderstanding But beyond that arguing isn't very helpful.

00:14:28: The other thing i would say though If do get an email after meeting Then at least do ask for feedback.

00:14:36: Yeah, if it's not detailed in the email or the phone call to us for a phone call and say like hey thank you so much.

00:14:43: could we have five minute where you can maybe give me some feedback so I could improve my pitch with other investors.

00:14:50: Well, that's a very fair thing to ask for and i'm surprised how few people actually do it now.

00:14:54: we talk lot from an founders perspective in way but our podcast has the name inside VC.

00:14:58: So would also be interested in the VC perspective this whole process before doing investment.

00:15:04: what is view of VC?

00:15:05: What kind of communication strategy does your guys have?

00:15:09: because usually when someone sees okay if somebody pitching to investor they have image of elevator only have either thirty seconds or it's kind of a trial, right?

00:15:17: If you look at these TV shows like Shark Tank, Dragon Stan, Hula de Leuven etc.

00:15:21: It feels like a trial but from my perspective today this isn't the case anymore.

00:15:26: yet I'm really interested in how do you behave as an investor because your time is.

00:15:32: Then Olaf Jakobi, who we had in our last episode always says from one thousand pitches I have to say nine hundred ninety five times no and five times yes.

00:15:40: So this does something to you Summing up.

00:15:42: This whole process from first contact two saying either Yes or No.

00:15:46: What's your view on communication?

00:15:47: From a VC perspective here

00:15:49: the longer You are in this job The more you quickly develop a sense of what could be A good deal where you feel you connect with the founder you get excited about the business Or if it's not the right fit.

00:16:01: I think this is sort of this pattern matching, it's often called that you develop over time.

00:16:08: And so as an investor if you feel like there are opportunities interesting to what do you do?

00:16:13: You relatively radically re-prioritize your time To make sure you can dive deep into that and suddenly become very reachable for the person.

00:16:23: Really try and quickly build a relationship.

00:16:27: that I think is how we think about it, where in most of the cases you quickly say no and don't want to have too many deals which are somewhat interested at the same time because this just means your spreading yourself too thin.

00:16:41: The trick is more to really engage with a very few where initially sense that you like it then focus on them.

00:16:50: An investment happened.

00:16:51: The contracts are signed, you're basically in the same boat.

00:16:54: How does communication change?

00:16:56: Maybe we could start with board meetings because quite a few people learned out there.

00:17:01: Okay There's something like an Investment Board or an advisory board Or whatever You call it.

00:17:05: how Does this work?

00:17:07: yeah It's interesting Because when We talk about the first board meeting after an investment We always say that is to come To jesus' Meeting because That Is When the facade sort of drops And you really get the inside view about what's going on in the company, at least ideally.

00:17:23: So the entrepreneur switches from selling to having your own his side of the table and asking for a support building the business solving problems all that.

00:17:34: so The only advice I would have there is be as transparent as possible Be open because You are truly aligned.

00:17:44: The investors now share holders And there is no point in withholding certain problems or issues because the biggest thing that you need to look for now, Is maintaining a high trust level.

00:17:58: That's what will be most valuable In your relationship with an investor going forward The easiest way To damage their trust Or make sure it never even gets built is to not talk about problems and then have them pop up later on when it's clear that they should've been brought up earlier.

00:18:18: However, the flip side is true.

00:18:20: if you do mention problems early-on does help to build trust because it shows your transparent giving people a full view And consider those on your side of table.

00:18:30: My experience with VCs often are always interested in great news.

00:18:36: I would like focus on how i accelerate further And as soon you tell them, we have this and that challenge or problem.

00:18:44: This won't work.

00:18:45: because of XYZ You kind feel like stepping on the brake in a way.

00:18:50: Is this misperception?

00:18:51: Does it really make sense to name every problem in detail... ...and say what exactly is happening with the company?

00:18:57: Because valuation also topic for quite few founders I guess That they are afraid telling bad news and later on the valuation drops.

00:19:05: Yeah but You reenter the sales process when you raise the next round and your trying to get again a new investor to price.

00:19:12: It's not your internal investor who is pricing around so there Is Not really problem.

00:19:18: They're of course, don't only want to be talking about problems But at the end of day Your best way to get value out if your investor is to get help And you don't need help on the things that are already working stiller.

00:19:29: You need to help.

00:19:30: all of these things aren' t working, right?

00:19:32: So I think it's just important to highlight those things where we think could do better.

00:19:37: obviously when a sort-of have a melancholic board meeting or your only talking about all the negative thing is this clear?

00:19:44: but i do thinks its important too.

00:19:45: highlighted areas were he can be better and you could get with their help off if investors in an make him do some work for us.

00:19:52: speaking at the board meeting again What frequency doesn't make sense?

00:19:56: How is it organized, how should I communicate in advance and after that during what's your advice here.

00:20:01: So depends a little bit just from very practical point of view on how many investors you have if they're local or far away.

00:20:09: but i would say an average board meeting every two to three months The younger the company is, and the fresher of their relationship.

00:20:20: And then over time you can space them out a little bit more.

00:20:24: so that's important.

00:20:24: Then there are lots of templates on our web as to how we construct these meetings.

00:20:29: I think it's just important to give a three-sixty view of the company.

00:20:34: Also make sure they leave enough time for discussion and strategic discussions with your investors.

00:20:41: Finally another point if you have important decisions You really should try and call your board members before the meeting.

00:20:50: I always think of good board meetings as those where you actually don't decide anything, but you just confirm what has been discussed before because As a founder probably have a clear recommendation And you want to avoid that discussion goes off sort you know, in the wrong direction.

00:21:11: So it's good especially if you have surprises or things that have developed very differently from what people would've expected.

00:21:20: prepare your board members for it.

00:21:22: The one thing you don't want at a board meeting is surprises so thats important to remember.

00:21:28: investors dont like surprises.

00:21:30: they wanna be prepped and they won't have a chance to think about it.

00:21:33: Try and send the board materials, that deck or whatever you're using.

00:21:37: try and send it ideally two days before... A day before is still fine but do send out before And if there are important things that come up just give your board members a call for them.

00:21:48: as far I know many founders fear of being controlled by their investors like loose-of control being told what should be done.

00:21:56: Is this irrelevant risk?

00:21:58: Well, I would like to say no.

00:22:00: You know?

00:22:01: It obviously depends on who your investors are and there is certainly some that might have the tendency... The vast majority of VCs that i've worked with prefer companies where you have a strong founder Who knows what he wants Ask for help when it needs but Is one we decided back because We believe this person can run the company and obviously it could be better than us.

00:22:26: We are not operators, we're investors.

00:22:28: so from that perspective VC is so fundamentally different from private equity or late stage investing where you do bring in new management of stuff...we don't like to do that!

00:22:39: We want the founders that were invested to ideally continue operating the business.

00:22:45: Maybe in some cases, there is a point when companies reach certain size where some type of founders that really like small teams and you know experimenting early on then it makes sense to bring somebody who's more experienced.

00:22:58: but I think interest per se from VCs exert control or anything kind.

00:23:09: because admitting that we've made a mistake in backing the person because our judgment at the time of investment is this right person to build his company.

00:23:21: How about arguments on team by the way?

00:23:23: Is there something you should discuss with your investor as well?

00:23:25: I think it's where an investor can actually play good role Because, You're sort-of at a good distance from their company or close enough to know what going on The individuals involved.

00:23:36: but you're also far away enough that, You don't know of the day-to-day sort of almost politics within a team.

00:23:43: Don't know some of the personal issues That may be there between people.

00:23:48: so you can actually Be almost like a coach when it comes to solving problems in The team and have an outside view.

00:23:57: we've done that repeatedly.

00:23:58: I sometimes feel I should have gotten a minor in psychology, maybe.

00:24:03: Because especially when teams are larger there is really interesting dynamics that start to happen.

00:24:09: but no it's something you absolutely shouldn't talk about and shouldn't hide.

00:24:12: It does happen in teams...it isn't the first company where this happens so its not going be complete surprise even if that person was pitching a couple of weeks before the company.

00:24:23: just doesn't happen in team.

00:24:25: So..its another thing were good to transparent.

00:24:28: What I also witness is sometimes the danger of, you know on children's playgrounds there are these things.

00:24:34: I think it's called a rocker right?

00:24:36: If one moves up and other ones move down And quite often at impression that may happen an investor or VC talks to one member of team says they want thing then another one gets different information so kind off sit in a rockin' away Different information levels Kind of manipulation technique Whether its intended Or not.

00:24:54: Is this relevant dangerous something that you witnessed often?

00:24:57: So I

00:24:58: mean, you've got to remember that these C's are in the information business.

00:25:01: All right?

00:25:03: Our business is about learning which companies doing well and which founders do something interesting.

00:25:08: so we're always hunting for nuggets of information much like journalists actually similar.

00:25:15: You have to assume that, to some extent if you're talking especially to several investors during a fundraising process word is going get out.

00:25:23: they are gonna talk among themselves over lunch whatever.

00:25:27: this is the small world and investors know each other.

00:25:29: Some of them knows for long time so there's high level trust between them.

00:25:35: So do assume it's hard to keep something under wraps Especially when we talked about several investors.

00:25:40: Having said I think especially once people have invested in your company.

00:25:45: If you tell them that certain things are confidential, I would be shocked if people were disseminating that type of information.

00:25:52: i think You have to be able to trust your investors To kind of keep their mouth shut when they have too.

00:25:56: but just be careful When during a fundraising process?

00:26:00: When talking to a lot of parties you can get A lot of chatter there.

00:26:03: yeah But this is external.

00:26:04: does it also happen That we see talks two different members Of the MD team and tells them different stuff And tries to manipulate them?

00:26:11: oh

00:26:12: I'm not sure.

00:26:13: Not very frequently, because to be honest it crystallizes that over time you usually have just mostly one person who talks on a regular basis and then is your main point of contact where the highest trust level so naturally becomes hard even if wanted play people against each other just because you usually have one preferred relationship.

00:26:35: I'm also not sure what would be the goal, maybe you want to get different perspectives from.

00:26:46: You're always going to do this because you are always farther away.

00:26:48: The

00:26:49: aspect that you mentioned answering the question before investors being chatterboxes, I also witnessed quite a few founders have trust problems in a way and even witnessed some of them saying hey we give out different information pieces so see who is the leakage here like where does it flow?

00:27:05: And also they are afraid of VCs having their own agenda.

00:27:08: One is trying to know, focus on different players in his portfolio one looking for an exit the other one's trying to reduce valuation for next round.

00:27:16: such stuff.

00:27:17: How do you deal with it?

00:27:19: Having a lack of trust or these fears.

00:27:22: Well as an honorpreneur I mean... You're at tough spot if feel like don't trust your investor.

00:27:26: It really makes that hard because you married through the cap table.

00:27:31: So first off all This may sound a little naive, but I would actually try and really address it with the investor.

00:27:37: There are things where you feel that specific agenda has been put forward because every investor especially when they're on board can only follow their interest as an investor.

00:27:46: They also have fiduciary obligation to do what's best for them which might want to remind your investor off.

00:27:54: If you really feel like there is trust issue or you cannot resolve it this way You just wanna switch them over.

00:28:00: so you communicate and you know hold information a little closer to your chest.

00:28:05: if, if you really feel that it's somebody who is either not acting in the best interest of the company or just not being trustworthy.

00:28:13: Let's assume the positive case.

00:28:15: what do you guys?

00:28:18: Obviously, and VC has a big portfolio with a lot of knowledge whether it's tools techniques management styles.

00:28:25: I heard about us investors who even do kind of concierge services for startups that they're kind of a database or information exchange program.

00:28:34: What is usual here?

00:28:35: what does normal from a VC perspective.

00:28:37: Does this happen to engage knowledge transfer between portfolio company?

00:28:41: Yeah.

00:28:42: Absolutely because i think you know one of the great things About having your portfolios like people run into similar problems And there is a lot of value in learning about how other companies have solved them, right?

00:28:53: So one of our jobs and that's what board meetings are good for.

00:28:57: Why I said it's important to highlight the issues Is to identify What Are Things In A Company Where It Might Make Sense For Them To Talk To The Founders Of Another One.

00:29:06: We Do Events For That Kind Of Thing And General Networking But It Does Come Down Also To Then The Individual Person On The Board Or Who Takes Care Of Their Particle Company Coming Back Into our internal group and saying, okay who knows about this or that?

00:29:21: And we have a you know every month.

00:29:22: We have full portfolio review where go through.

00:29:24: all the companies then discuss these things.

00:29:31: Besides that, our specific case we have a support program for the companies.

00:29:36: For example you know Luis Hanuman the former rocket chief marketing officer.

00:29:40: he's responsible for helping companies on operational issues like performance marketing and things like that.

00:29:47: so We do have some experts either in-house or in our network that we repeatedly pull in to help companies on specific issues.

00:29:56: But beyond that, connecting their portfolio companies again through networking events or individual sort of one-to-one connections based on a certain topic.

00:30:05: I think that's one of the key value ads you get from a good investor.

00:30:09: I can totally imagine supporting with HR and marketing insights is by now something really necessary for getting great deal flow.

00:30:20: but maybe last question here What about follow-on financing?

00:30:24: How does communication change if a founder has a set of investors and is now trying to raise the new round, what would you say doesn't make sense here.

00:30:32: And

00:30:32: what changes anyway?

00:30:33: that's great bonding experience with your investor right guess?

00:30:37: suddenly You know Your interests are not fully aligned.

00:30:39: you both want to make sure there's good outside lead coming in ideally at high price.

00:30:44: You certainly have the VC sort of really rooting for you And that's a great way to really be team players because it can create a lot of value.

00:30:52: So first off all, VC does these things at very high frequency Because they have portfolio and you as an entrepreneur only do once per year or whatever.

00:31:01: so You want tap into the VCs network of potential follow-on investors?

00:31:06: Ask your investor for introductions then Once are in process with them use your VC as back channel for making sure, let's say you've had that first meeting.

00:31:18: You haven't heard from the guy?

00:31:20: You ask your investor to call him.

00:31:21: if he made the intro and said like hey I sent you company X what do think about it?

00:31:26: It is another way Through another channel through which you can address concerns that the VC might have and understand sort of, The true reason why he's not engaging.

00:31:35: Really go for it!

00:31:36: And then your investor Can be extremely helpful in strategizing around.

00:31:40: if You Have several folks who are interested how do you really play them?

00:31:44: How to make sure you synchronize the timeline?

00:31:46: How Do you get Them To put independent offers on the table?

00:31:51: All these things That we touched On earlier.

00:31:53: Just use the VC because He'll have experience In that he'll be doing it a lot of times.

00:31:59: So, its just something where... It really makes sense to work together very-very closely.

00:32:04: Those are usually the periods when you talk with your founders often several time per day because sometimes even optimizing email wording

00:32:12: or

00:32:13: hey should I now send text?

00:32:14: Should i call guy?

00:32:15: Should I send an e-mail?

00:32:16: Or wait another half day is too eager.

00:32:19: if do this right now all these kind things.. Its nuances.

00:32:24: again we need the minor in psychology But it's something where you can really create value if you work together in the

00:32:31: right way.

00:32:32: Yeah, I was about to say that psychologist comes out again and says yes

00:32:35: absolutely

00:32:36: okay cool.

00:32:37: so we learned a VC is kind of a psychologist a strategic mind A great communicator.

00:32:42: hopefully thanks for sharing all this knowledge.

00:32:44: Thank You So much.

00:32:45: thank you for listening.