Edit ModuleShow Tags

How not to start a relationship


Published:

In the last month I've had the chance to make about 50 new friends. I've suddenly become very popular with investment bankers and have been on the receiving end of over 50 emails that look something like the following:

"We met once a long time ago when I was with firm X. I'm now at firm Y. We are the blah blah blah best at blah blah most successful blah blah tied into blah blah working with blah blah blah connected with blah blah blah. Congrats on all the success at Company W. We are very interested in talking to them about blah blah strategic blah blah - can you introduce us to a high-profile-CEO."

At first I felt compelled to respond as part of my "answer every email and try to at least be polite / responsive to everyone" approach to life. After a few days, I started getting annoyed when I realized I was simply viewed as a conduit to an introduction. When I saw a few similar emails to my co-investors in at least one company, I realized that there was a complete lack of sincerity in many of these emails - it was no different than a random salesman emailing me asking if I wanted to buy a random widget.

Now, I have several good friends who are investment bankers and we have a handful of trusted ibanking relationships and folks who are our go-to ibankers. These are people who have developed a long standing relationship with me and my partners, have worked with us in good times and bad, and have always been reasonable and thoughtful about their fees, especially in situations that didn't work out.

It amazes me that 50+ people could suddenly come out of the woodwork in an effort to "build a new relationship that's not really a relationship" thinking it would give them an opportunity, or even an advantage, in the context of a set of hot companies.

When I think about the relationships I've developed, whether it be with investment bankers, LPs, co-investors, or anyone else, they evolve over a period of time. They don't require boondoggles or fancy things; they require sincerity and substantive interaction over a long period of time. Then, when there are moments of opportunity, these are the people that I go to (and hopefully who come to me.)

There suddenly seem to be an abundance of "transaction relationships" out there.

Entrepreneurs, beware.

{pagebreak:Page 1}

Edit Module
Brad Feld

Brad has been an early stage investor and entrepreneur for more than 20 years. Prior to co-founding the Boulder-based Foundry Group, he co-founded Mobius Venture Capital and Intensity Ventures, a company that helped launch and operate software companies. Brad is a nationally recognized speaker on the topics of venture capital investing and entrepreneurship and writes widely read and well respected blogs at www.feld.com and www.askthevc.com. He holds bachelor's and master's of science degrees from from MIT. Contact him at brad@feld.com

Get more of our current issue | Subscribe to the magazine | Get our Free e-newsletter

Edit ModuleShow Tags

Archive »Related Articles

Ugly behavior: How to stop it

Be kind to yourself when you are physically, emotionally and spiritually spent. See yourself as you desire to be rather than how your ugly self-talk depicts.

Youth sports: Insanity and big business

Playing one sport year-round creates injuries and may be counterproductive to the goal of creating a great athlete. Parents need to focus on creating a healthy athlete, and not a year-round robot.

Bank of America names two senior VPs in Denver

Bank of America Merrill Lynch has named Christian Bienvenu and Carroll Steger as senior vice presidents and senior client managers, serving middle market companies with annual revenues of $50 million to $2 billion.
Edit ModuleShow Tags

Thanks for contributing to our community-- please keep your comments in good taste and appropriate for our business professional readers.

Add your comment: