The other day I received a package in the mail from an entrepreneur, containing a company t-shirt and a thank you note.
The package came from an entrepreneur who had come to pitch us a few weeks back. We didn’t agree to invest in his company at the time, but after hearing his pitch I offered to make some major corporate introductions. In addition to thanking me for the introductions, the entrepreneur gave me an update on the relationships those introductions had led to.
Getting the package brightened my day, and I was really happy to hear about their progress. But then I stopped to think: why did such a simple gesture have such a powerful impact on me? And why doesn’t this happen more often?
Ultimately, I think it boils down to how far down the road people are thinking.
Over the course of a year, I meet with countless entrepreneurs who are looking for funding for their companies. Caught up in the day-to-day of running a startup, they’re looking for results — and fast. After all, the future of their companies may hinge on a fresh round of funding that will put them ahead of their competitors. Moreover, if the startup ever grows into a corporation, its leadership will be held accountable for quarterly earnings and year-over-year growth — not plans to address issues coming years down the line.
All of which goes to say that it’s hard to fault individual entrepreneurs for their short-term, transactional view of relationships. But in my job, I tend to think in terms of decades rather than quarters. When I’m investing, I’m not thinking about making deals that will earn me money tomorrow. I’m thinking about decades-long relationships. It’s not so much about making a single deal as it is about making a lifetime of deals together.
When you’re thinking on that kind of time horizon, a meeting is more than a request for a transaction. It’s an opportunity to begin a new relationship.
This perspective affords us an opportunity to take a more nuanced view of how a meeting went. Defined narrowly, one might say my meeting with the entrepreneur who sent me the t-shirt was unsuccessful. After all, I didn’t invest in his company. But by taking advantage of my introductions and following up with me, the entrepreneur took an important first step toward building a long-term relationship. And while I may not have been ready to invest in his company that day, who’s to say I might not be interested a few months down the line? Or in his next company?
While your quest to get that next round of funding may seem like only thing going on in the world, don’t forget to take a step back to build and maintain relationships. Doing so can pay profound dividends over years to come.
So, if an investor took a meeting with you and didn’t invest, follow up with them anyway. Send a note or an email about advice you followed, or simply to let them know how things are going. Even small gestures like a thank you goes a long way. They’ll remember that the next time you ask for a meeting — and probably be more excited about working with you in the future, too.
To quote the ending scene from the classic movie Casablanca: “Louie, I think this is the beginning of a beautiful friendship.”
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Mark Achler is a serial entrepreneur and a managing director of MATH Venture Partners. Follow him on Twitter @MarkAchler.
