Welcome to today’s education framework, that is focused on the Ideal Startup Investor…in our words a MAGNA quality Investor!
(Yes…investors who take a leap of faith in early/growth stage. The rules are similar during scale and mature stages, but these are more apt in early stage.)
When you embark on an initiative, having a set of tools/frameworks and concepts with the right attitude to match, will significantly enhance the chances of a positive outcome. Note that we did not say ‘successful outcomes’, but rather positive outcomes. This is a more productive mindset, even for initiatives that do not end up matching your definition and metrics of successful investment. Whether you are looking for the dream investor, or playing the role of one, this may get you better equipped to have the right conversations for alignment.
What does a MAGNA High5 investor seek?
1. Conservation of capital
2. Growth of the investment
3. Excitement of success
4. Fulfillment of purpose
5. Intellectual stimulation.
How does a MAGNA Investor look like?
1. Curious, but Not intrusive: It is perfectly alright to have tons of insightful questions to understand, but nothing is more infuriating to a start team that a biased investor with tons of pre-knowledge of everything.
2. Thoughtful, and Decisive. This is helpful for both the entrepreneur and the investor and gets the clarity of engagement and the path.
3. Adventurous, but Risk Tolerant : Ability to go with the ebb and flow of the macro and micro environmental aspects. A good investor brings intellect, not anxiety.
4. Active but not overbearing: They are readily available to offer guidance, introductions, brainstorming, , and stay out and give space to the entrepreneur and the team. They are a champion and cheerleader, mentor and voice of reason, and provide constructive criticism straight up, and provide timely positive reinforcement. Certainly non ideal, is an investor who always has 1000 page binder of “this is what one of my neighbor’s nephew did, and you can repeat and succeed” mantras.
5. Emotionally resilient : A dream investor is the one who has a control over their emotional range. A nightmare is a wild swinging emotional pendulum one, looming over the entrepreneur seeking updates 24X7.
In our next MAGNA session, we will look at what a MAGNA Startup entrepreneur look like. Stay tuned! Do share your thoughts and insights. MAGNA team loves to learn, and teach!
Shailosophy 