Streaming Consciousness: Values Based Investing
Why understanding your values will help you select the right investor (or connect to the right founders)
Why understanding your values will help you select the right investor (or connect to the right founders)
This weekend I had a great conversation with a young, wise, and driven founder. It was a follow-up call that didn’t focus so much on the startup’s traction or how he was planning to expand to new markets. We discussed his ideal profile for a Head of Business Development. A few sentences resonated with me because he clearly described the desired characteristics in people who become involved in his venture — no matter if the individuals are employees, advisors, or investors.
The founder shared four specific qualities he seeks out to propel the startup into a transformational multi-billion dollar company. Those values (which he mentioned I exuded 😬) were:
Respect
Humility
Speed
Ruthlessly Persistent
This concept of having values drive who you (as an investor or entrepreneur) partner with isn't novel. My friend, Elliott Robinson (the ValuesVC on Twitter), regularly posts the value principles he shares with his portfolio companies.
I’m reminded how important it is in the startup ecosystem to have a crystalized view of your value system after my conversation with the founder and re-reading Elliott’s values document. I’ve been challenged to write down my principles, characteristics, and mantras myself to ensure future alignment with portfolio companies. I honestly like the four factors that the founder mentioned and look to build out how I will continuously improve at fulfilling those characteristics in board work and my dilligence process.
I encourage every investor and founder to do the same. No matter if you look to share your values or principles publicly or privately, it is essential that you take time to build your values-based investment strategy. As a VC, this will provide me with a Northstar on what my actions should always look to exemplify. Understanding what values you prioritize as entrepreneurs in an overcapitalized market will help you filter for the best lead investor to join your board.
What values do you believe are essential for you to align with your crucial business stakeholder (i.e., investor or founder)?