Let’s Talk: A VC’s Approach to VC Investment

From my seat here at OpenView, I enjoy the privilege of looking into many different businesses and being introduced to a variety of personalities. Whether they are an entrepreneur, CEO, co-founder, president, chairman, or fellow investor, I enjoy numerous interesting conversations and meet some very driven people — whether or not they’re currently looking for VC investment. If not the first point of contact with OpenView, these discussions are usually very early on in the relationship-building process, so it is imperative that they go well. Often times it goes very smoothly and everyone leaves with a mutual appreciation or even better, looking forward to diving more deeply into a potential investment. But other times, conversations can turn south, with one or both of us coming out a bit grumpier than when we went in. Below are some things to keep in mind during initial conversations with potential partners, whether you are on the investor side of the table or the company management side.

We’re on the same team:

We want to help build great companies, and so do the people running them. Whether it’s the initial call or email to make an introduction, this is a point we want to drive home. As an expansion stage company, you clearly focus extensively on execution and operating an efficient business, for which I’m sure it feels like there is not enough hours in the day. Sometimes calls from our team will get confused with sales calls, but when OpenView reaches out, it is to

1. Learn about the business and the people involved
2. Introduce our unique approach to investing
3. See if there is a mutual interest to explore a potential investment

We are constantly cultivating relationships with companies and getting on each other’s radar early and consistently. This is a hallmark of what we do. There are a lot of VCs out there, and many of them are making calls to many of the same businesses. So for us, it is important for people to understand who we are, what we invest in, and how we aim to add value.

Ask us anything

In talking to the number of  businesses that we do, we pick up quite a bit of market commentary and are happy to trade notes with people on what we are seeing out there. If there is not a fund-raise currently on the docket, then I am always happy to have a market discussion and help in ways other than an investment.

Take down the wall

This may be the most important for me. It can be uncomfortable sharing your business’ financial details with someone you don’t know. But we’re committed to remaining completely transparent and conscious of people’s time, building rapport and sharing high level strategy, and seeking to understand where a business truly is financially. This process is the only way we can see if there is a fit and if we are the right partner to help grow the company.

This is not to say that most of the conversations I have aren’t completely enjoyable and positive — because they are. but I know some folks have been burned or are skeptical about outside investors. Let this be a green light to go ahead and take that call and just see where it goes.