The best investors can provide much more than just cash. In fact, by leveraging your investors correctly, you might just find they’re the best recruiters you’ll ever have.
“I suspect the partners at [Union Square Ventures] spend at least 25% of our time on things that would be considered ‘recruiter’ functions. And we should probably spend more of our time on this,” writes Fred Wilson. “I don’t know of a better way to positively impact the performance of our investment.”
“But not every portfolio company gets equal benefit out of our recruiting function,” Wilson continues. “Like all things in life, the squeeky wheel gets the oil.” In this post for his AVC blog, Wilson provides five rules for effectively leveraging investors to build out your team, and rule #1 is if you want to get results you have to ask for them. Wilson recommends being specific in your requests and breaking them down into “small asks.” Communication is key, and actively engaging your investors and utilizing them in your recruiting process will make them feel more involved and only more willing and able to provide you with help and connections when they can.