I was catching up on some Tivo the other night and couldn’t resist this scene from The Office. I’ve met some investors who are incredibly quick with a yes. Some even get to handshake agreements before the end of the first meeting. It seems to work for some, particularly those who spread their bets out across many, many investments a year and don’t get involved at the board level.
I don’t like the idea that early stage investing is really a numbers game. Make enough bets and 1 or 2 might end up paying off, so make a lot of bets. That just doesn’t inspire me. I prefer to be more involved. I like the idea of working closely with a handful of teams and getting a chance to really get to know them and their company. Specific areas of investment focus are helpful for generating a quick gut check on the market and my personal level of interest. But, I think a deeper dive with the people behind the business is an important part of the investment process and gets everyone involved at the starting gate together before the check clears.
