008. Work Within Investors Systems

Text your thoughts directly to Rich.

Working within an investor's system means getting through their process. 

About SpringTime Ventures
SpringTime Ventures seeds high-growth startups in healthcare, fintech, logistics, and marketplace businesses. We look for founders with domain expertise, forging a path with a truly transformative technology. We only invest in software-based businesses in the USA. We bring a people-focused approach, work quickly, and reach conviction independently. Our initial check size is $400k to $600k. You can learn more about us and our approach.   

About Rich Maloy
Rich's mission is to rebuild the American dream through entrepreneurship. He works with early stage startups transforming the world, giving all people the opportunity to grow, learn and earn. With prior careers in finance and sales, he's now focused on startups investing through SpringTime Ventures where he is a Managing Partner. He's a father of two young children and loves sci-fi, skiing, and video games.  

Episode Transcript

Rich (00:01):
First up, working within an investor's system means
getting through their process.
In an ideal world, everyinvestor has a clearly defined
process for making an investmentdecision.
At SpringTime for example, we doa 30-minute call.
A 1-hour call and then a final1-hour call.
In between each we're doingdifferent levels of due

(00:23):
diligence escalating towards thevery end.
But you know where you standbecause that's our process and
we can tell you where you are init.
But not every fund canarticulate their process, or
maybe even wants to.
Ask an investor, what their nextstep is and you're going to get
some form of,"uh, well, youknow, we gotta get back to our
team and talk about it anddance, dance, dance, dance,

(00:44):
dance, dance." Here's where youneed to start digging in and
asking clarifying questionsabout their process.
Specific questions like who elsedo I need to meet from your
team?
What materials do you need fromme right now?
What will you need from me inthe future?
What does the meeting with theinvestment committee entail?
What is between here and meetingwith the investment committee?

(01:07):
You can also play back what youheard and follow up with

specific questions such as: Okay, it sounds like the next (01:10):
undefined
step is to review it with yourteammate.
After you review it, does itmake sense to follow up with a
30 minute meeting or a one hourmeeting?
Should I follow up with you onFriday or next Monday?
Which do you prefer?
How do you take next steps onceyou've reviewed it with your
partner?
You can also ask hard questionslike.

(01:32):
What did you hear today that hasyou concerned?
Or is there anything that youheard today that would preclude
you from making an investment?
Don't be afraid to dig in andask these questions.
Make sure you leave time forthis at the end, or start with
this at the beginning, do it inthe middle, just to make sure
that you ask clarifyingquestions about their process.

(01:53):
You need to know what theirinvestment process is because
you need to know how you can getthem to take action.
To take that next step with you.