The Right Investors
Telling people to get the right investors is something that everyone wants so that advice is not exactly earth shattering. I have been thinking a lot about who is the right investor for each company as they raise funds for the next round as the company begins to grow.
This past week I spent time with many of the companies that I have invested in. One is in the education space. Their vision is one where working with universities and colleges will be essential down the line It would make a lot of sense to bring in an investor who really knows and understands the education space. They know the players and are fully aware of how the education space works.
I also spent some time with a company in the animation space. They are working on a variety of things and I honestly had no idea the right advice to give but I did know who would. I connected them and it will help the company as they move forward. Their next investor might be well suited if they are in that space.
Another company that plays in several spaces from hard goods to media to product might be best suited to an investor that is not your typical institutional VC.
We are deep in the throes of a time when so many companies are being built in pretty much every single vertical imaginable. Bringing on an expert (who is an investor) in each space is a tremendous asset. Many of the really large VC firms have multiple divisions from biotech to enterprise to commerce and that is great. Yet there are so many investors out there that are arms of large companies in a particular space or investors such as myself that can be of help to companies as they navigate the waters of the vertical that they are trying to break into and change.
The good news is that the investor pool has truly expanded and there are the right investors out there for each company. You just have to look for them and you should.