Over the last few months, I’ve talked with several VC fund managers who’ve experienced fundraising from limited partners taking longer than planned. These aren’t emerging managers. They’ve established themselves with previous funds that returned capital to their limited partners. But as the public market and other asset prices have come down, limited partners have been slower to commit to making new investments.

Today I heard another story: limited partners who’ve signed paperwork and committed to investing in a VC fund reneging. They will no longer provide any capital to the VC fund. Notably, these limited partners are individuals, not large institutions.

This is just one story from one fund manager. I imagine it’s the exception rather than the norm, but it’s something I plan to watch closely. If this starts happening more often, emerging managers and the founders they back will likely be hit hardest.

Yesterday I went to the Atlanta Hawks vs. New Orleans Pelicans basketball game. It was a great game that went to overtime. Congrats to the Hawks for pulling out the win. I don’t watch sports on TV often, but I enjoy attending sporting events. The atmosphere and energy at a game are amazing, and you don’t get that at home, but that’s not what I enjoy most.

Sports teams create commonalities. People who otherwise may not have much in common share a love for their team. Sporting events bring them together. Serendipity becomes possible. People can build connections with each other as they cheer for their team. After the sporting event is over, with those connections intact, people have conduits into networks they otherwise might not have been able to penetrate.

I think of each sports team as the center of a network that attracts people from various other networks. The thing that amazes me is the number of unrelated networks sports pulls people from, bringing them together. That’s powerful, and I’m not sure if people have thought about this or comprehend it.

The conversations I had at the game yesterday reinforced this to me and crystallized why I love sporting events. I enjoy getting to know and learning from people in different networks, and sporting events are amazing for this.

This past week, I had independent conversations with a few people about spotting talented people early. Their perspectives varied because they’re in different industries: music, technology, and sports. All three are industries where talented people can have outsize success.

I won’t dive into the conversations, but let me just say they had a common thread: identifying talent before there’s data, traction, or association with a credible brand is hard. For example, Justin Bieber put out YouTube videos before his career got off the ground. Recognizing his talent among a sea of YouTube videos was hard, but Scooter Braun did just that.

Identifying talented people and developing them is arduous work. Many avoid it because it’s so hard. Instead, they prefer to come in after the talent has traction or numbers that are undeniable. There’s nothing wrong with this as it mitigates risk, but it’s not my preferred approach. My view is that yes, it’s difficult, but it’s fulfilling and an opportunity to have an impact. Recognizing something special in someone and helping them reach their potential is incredibly rewarding to me. Especially if they wouldn’t otherwise have gotten an opportunity.

Today marks the end of my one-hundred-thirty-sixth week of working from home (mostly). Here are my takeaways from week one hundred thirty-six:

• Deal negotiating – A deal is good when neither party gets exactly what they want but both parties are good with the end result. This week was a reminder that keeping the spirit of the relationship in mind is important when negotiating deals. If you want a long-term partnership, the deal should reflect that goal. If it’s a one-time transaction, not so much.
• Fundraising – I’ve talked with a few companies beginning their fundraising efforts now. The macro environment is tough, and the holidays are approaching fast. Fundraising is taking longer than these founders anticipated, and some are reducing round size and valuations to get the rounds done.
• Low meeting bar – This week I had a few meetings that were the result of setting my meeting bar low. They had some unexpected positive outcomes. I like the idea of keeping my meeting bar low when time allows. It keeps me closer to ground level and allows for serendipity.

Week one hundred thirty-six was productive. I made some great unexpected connections. Looking forward to next week!

The founder’s journey is something the average person can’t relate to. It’s a roller coaster of high highs and low lows. It’s hard to describe, and if you don’t see it firsthand, you don’t really understand it.

Today I found a video that documents the journey of a founding team from the idea stage to the sale of their company. These two cofounders weren’t even sure what problem they wanted to solve at first. The video details their year-long process to identify the problem they want to solve, their fundraising and hiring, and a host of other things. I don’t know these founders or their story, but the video appears to do a good job of documenting their five-year journey.

If you’ve ever wondered what the founder journey might look like, consider watching this video.

I shared an unconventional view with a friend this week: I believe that desperation can be a superpower when it’s harnessed—and great founders know how to harness it. When people’s backs are against the wall, miracles can happen. But only if their energy is focused.

Why? I think it’s simple: focus. When you’re in a tough or painful situation and desperate to get out, you zero in on what’s important. You ignore everything else. You focus on the things that can get you out of the situation. You’re not thinking about what you’ll do after or what you did before. You’re locked into the current situation and trying to escape it.

Nobody wants to be in a desperate situation, but life happens. If it happens to you, don’t give up. Some of the most unlikely outcomes—outcomes we celebrate—arose from the ashes of a desperate situation because someone focused and refused to give up.

Today I had the privilege of attending an event where two early-stage founders pitched the cofounders of Tiger Global and partners from Bessemer Venture Partners, Charles River Ventures, and Alsop Louie Partners. The founders did a fantastic job. I was curious to hear what feedback they received—it’s not often you’re able to hear feedback from such accomplished investors regarding early-stage companies.

The comment that stood out most was about metrics. The investors were impressed by both pitches, but the founder who included detailed company metrics was phenomenal. Customer acquisition cost, lifetime value, gross margins, projected revenue, and a host of other metrics were included in her pitch. She spoke confidently and demonstrated that she had a great handle on the levers that matter most and that drive her business. The panel said it was rare to see an early-stage founder have such a great grasp on the metrics of their business so early. They praised her and asked her if they could follow up with her so they could learn more.

If you’re an early-stage founder with a product in the market, identify the metrics that matter most in your business and focus on moving them in the right direction. Understanding these metrics will help you both stand out at this stage and make better decisions.

I was communicating with Roy Bahat by email. I ended up asking him for an introduction to another person. Roy, who is great, quickly agreed, asking that I send him a “forward intro email”. I reviewed his format and loved it. I’m often asked to make email intros, and I agree with what Roy says in his post. Anyone wanting an email intro should consider using Roy’s format. It will make it easier for your contact to make the intro, which will likely lead to the intro being made faster.

I recently listened to a founder’s wife share her reaction to learning that her husband wanted to quit his lucrative job and start a company. She was angry, and understandably so. Life had recently dealt them a series of positive and negative jolts, and this would be another jolt, albeit self-inflicted. They discussed the decision ad nauseam. Ultimately, she decided to have faith and support her husband in pursuing his dream. It’s early in the company’s journey, but things have gone well so far, and she’s happy that she supported him.

Becoming a founder isn’t a decision to take lightly. People don’t discuss this as much as they should: starting a company probably will greatly affect the founder’s loved ones. Start-ups don’t have many resources, so the financial impact can be hard for a family to adjust to. Especially if the financial load is now on one person. Just as important is time. Early-stage founders put tons of time into their start-ups, which leaves less time for loved ones.

If you’re thinking about starting a company, be sure to consider and consult your close loved ones as you’re evaluating entrepreneurship. You and your team will be under an inordinate amount of stress to make the company succeed. It will be much harder if you’re under similar stress at home. In a perfect world, you want your loved ones to be your main cheerleaders and supports. They’ll find it hard to live up to that if they haven’t been included in the decision-making process.

A seasoned executive I respect emailed me a quote this week:

If you don't know where you are going, you’ll end up someplace else.

                               ~Yogi Berra

It’s a simple, powerful, and thought-provoking statement. And I agree with what Yogi said. Having a clear destination (or direction at least) helps me deal with all the uncertainty and noise in the world. It allows me to stay calm in stressful situations and make the right decision. I think about where I want to be and confidently evaluate decisions based on whether they get me closer to or further away from that destination. My decisions might be counter to what others would do in the short term, and I sometimes hear questions or criticisms from people who don’t understand one of my decisions. I’m able to confidently (and respectfully) tune that noise out, because the right decision is obvious to me, given my destination.

Yogi is right. If you don’t have a clear idea of where you want to go, you’ll definitely end up someplace else. So where do you want to go?

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