There are some blog posts that every entrepreneur should read.
Hunter Walk at Homebrew recently wrote one of them.
It’s titled Oh Shit, Your VC Just Quit Her Fund! What a Good CEO Should Do Next.
He covers three cases:
The real gold in this post is in the Too Early To Tell category. Hunter has a great lead in:
“Here’s where I think founders and cap tables
shouldbe more proactive. The default is to let the firm assign another person at the fund (hopefully a GP) and then just keep working on the plan of record as if nothing changed. My experience suggests this will be neutral to negative long term,unless you end up in the “killing it” camp by next fundraise.”
Hunter’s notion that founders and the CEO should be proactive here is right on the money.
At Foundry, we periodically load balance our boards. This is a different phenomenon than the one Hunter is talking about, although we’ve learned to be clearer about what we are doing when we are doing it. I recall a personal low point when a founder/CEO who is a close friend asked to go for a walk and started the conversation with “You could have told me that you were leaving my board in a more graceful way than a one paragraph email.” Very true.
The lesson once again is things change, communicate clearly, and be proactive.
A few weeks ago Hunter Walk and Satya Patel of Homebrew, a one year old seed-stage VC firm that my partners and I are investors in, came and spent the day in Boulder. This wasn’t the typical “hey – I want to come see you for a meal when I’m in town” kind of meeting that happens with a lot of VCs. In this case, the firm (Homebrew) came by, committed a full 24 hours to being in Boulder, and went deep with me and my partners.
I’ve known Hunter for a while although our relationship is mostly from a distance – email, blogs, and twitter. He went to GSB with my partner Ryan’s wife Katherine so they’ve known each other for a while and have a handful of entertaining stories from their time together at The Lobby Conference. This was the first time I recall meeting Satya Patel although I’ve also known him from a distance.
Hunter’s blog, 99% Humble, 1% Brag, is outstanding. If it’s not part of your daily reading, it should be.
Hunter, Satya, Ryan, Seth, Jason and I spent two hours in a conference room with a white board. Hunter and Satya tossed a bunch of things they wanted to discuss up on the board and we went through the topics one by one. We shared our view about how we address them, they added some of their thoughts, asked some questions, and we cycled more on the topics. We got through most of them and then went to dinner at Oak for a few more hours of discussion, this time more casual, but just as deep and wide ranging.
The next morning Hunter and Satya hung out at Techstars and did office hours with a few of the seed stage companies in Boulder.
I had a great time and learned a lot. Hunter and Satya both sent thoughtful debriefs around which caused some additional discussion on our end about a couple of topics we felt we could learn more from. And we developed a deeper relationship, outside of a specific deal context, which will help us in anything we do together going forward.
This was so much more enjoyable, satisfying, and useful than a flyby. Hunter / Satya – thanks for making the effort to come see us.