On Thursday we announced our Series A investment in Managed by Q. Throughout the day, I received countless congratulatory emails and tweets from friends. “Amazing investment.” “Love that company.” “Nice win.” “HUGE CONGRATS.” And so on. On my way home, as I reflected on these kind messages, it occurred to me that I don’t deserve a pat on the back. There’s a long road ahead for the company, and I really haven’t done shit. Sure, I built a relationship with Dan and Saman, hustled to help Q win new customers and key employees, and gave them a generous term sheet. But writing a check is easy. Being an engaged board member and a supportive partner in good times and bad is the hard part. And building an enduring, category-defining company is nearly impossible.
Mark Cuban once said, “the magic in business isn’t raising money but making .” Amen. Our industry spends too much time sensationalizing the fundraise while ignoring the fact that this process marks the beginning, not the end, of a startup’s journey. Once term sheets have been signed, there are people to hire and fire, product and features to ship, endless reams of data to analyze, and millions of small but crucial decisions to be made.
Let’s be honest for a second, fundraising news drives page views for the tech blogs, makes companies feel validated, helps investors build their brands, and can even intimidate the competition. There’s no denying that raising money is an important milestone in a company’s lifecycle. But dollars in the bank is far from the most important metric. I like to remind my founders that cash is oxygen for their startup—it buys time and space to breathe. But money alone cannot buy victory. That would be like Sir Edmund Hillary celebrating before reaching the summit of Everest based solely on his vast store of supplies.
Whenever I make an investment, my Jewish anxiety tends to kick in and I become laser-focused on how I can support the team in the short and long runs. After the 24-hour buzz of winning the deal fades, the real work begins. What follows a fundraise is daunting for every founder and investor. Don’t get me wrong, I sincerely appreciate when people take time out of their days to send a thoughtful note. Each of us has a million things going on, and these small and simple acts of kindness are perhaps the most underrated acts in business.
But rather than sending a congratulatory pat on the back, wish me good luck, see how I’m feeling, ask if or how you can help. We all need to do this better. I am no exception. I’ve always believed it takes a village to raise a startup. The more strongly we support each other, the more quickly our industry will grow and thrive, and the more successful our companies will be. I don’t show up every day to write checks. I show up to fight for my founders and deliver a return to my investors. And I don’t show up alone, I show up alongside everyone in our ecosystem that is passionate about building companies and moving the world forward.