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1 posts from September 2006

September 18, 2006

What Have You Done For Me Lately?

Red Sox Nation is strangely depressed this month of September.  Ever since the "Boston Massacre", where the hated Yankees came to town and swept five games to knock the Sox out of contention, it's been a time of great disgruntlement and dissatisfaction.

It is a bit jarring to see how quckly fans can turn on this team and ownership group.  After all, these are the same folks that delivered arguably the greatest comeback in sports history, and ended the 86-year drought to win the World Series a mere two seasons ago.  This team has been in the playoffs for three years in a row, yet the fans appear as down on them as the lowly Celtics.

This attitude of Red Sox Nation is very reminiscient of an attitude pervasive in VC and entrepreneurial circles.  I refer to it as the "What Have You Done For Me Lately?" syndrome.

For entrepreneurs, it's a classic source of frustration.  They close a big deal, deliver a strong quarter, ship a breakthrough product release - and the board smiles and says, "Nice job, but what's next?  How's that next quarter look?"   After all, the next quarter is the most important one.  And G-d forbid you navigate a great exit as an entrepreneur.  Before the dust even settles and the wire transfer is cold, everyone around you asks, "what's next?".

As a VC, I see the same syndrome.  Nice deal, say your partners and the LPs, what's the next one going to be?  Nice exit - way to go - what else looks good in the portfolio and what does it take to deliver an even better one?  If you can raise a great fund, everyone wants to know when you're going to "put it to work" and deliver the returns.  After you deliver the returns, everyone wants to know when your next fund is going to be.

If you can't beat them, don't even bother trying.  An entrepreneur friend of mine once told me he tries to live by his father's motto:  "Ever Forward" (although his father probably said, "immer nach vorne").  I can't think of a more apt motto for entrepreneurs, VCs and Red Sox Nation alike.  It simply doesn't pay to look back.