Don’t Keep Score

“The richest people in the world look for and build networks, everyone else looks for work. Marinate on that for a minute.”  – Robert T. Kiyosaki

I still vividly remember the first demo day that I ever got invited to. It was YCombinator’s back in 2013. Demo days are typically held at the conclusion of a startup accelerator’s program and they are meant as a way to showcase the latest and greatest startups that have successfully completed their tutelage. Somehow I had managed to finagle an invite to the highly anticipated YCombinator Winter Demo Day and as I  was still a noob to Silicon Valley at that point, I was excited to see what all the fuss was about. After all, YC is known as the “Harvard” of Silicon Valley accelerators and all the “who’s who” of venture capital always showed up at these events to try and get first dibs at the latest batch to go through their program.

YC’s demo day is famous not only for the hot startups but also for the celebrity cameos such as Ashton Kutcher and Joe Montana who attend in an attempt to hand pick the next AirBnB or Dropbox. Neither of them showed up at the one I got invited to, but suffice it to say, all the “big name” VC’s were there and showed up ready to write cheques.

Going to a YC demo day is like going to an art auction. If you’ve ever been to a Sotheby’s or Christie’s auction you’ll know exactly what I’m talking about. When it comes to fine wine, art jewelry or antiques, auction bidders always show up prepared. Interested buyers and VIPs get sent a catalog and reference guide of the items going up for sale ahead of time so they can do their homework. They are then invited to an auction preview before the actual auction so they can touch and feel the goods before making a decision. Come auction day, their paddle raising execution is mechanical. They know exactly what to bid on and what price they are willing to pay.

In the very same way, savvy early-stage investors always show up to demo days knowing exactly which startups they will invest in. Make no mistake, demo day is never the first time the true VCs have seen or heard of these exciting new companies. Most investors have already gotten “tipped off” or introduced to the star performers in the batch (often times from a friendly YC insider) and most have already made actual investments into the companies in the friends and family round. Demo day, then simply becomes a forum for them to talk up their book to the press and public. It’s actually quite genius.

Being “in the know” takes a lot of time and effort. Not only do you have to have the connections to be presented with these insider deals ahead of the public, you also need to be worthy of receiving the tips, be it through a track record of investment success, a strong brand that you can leverage to help the startup succeed or simply very very deep pockets.  Unless you are a trust fund kid or are extremely rich (I’m neither), it takes years and years to become a true insider. It never happens overnight.

“Networking”, as much as I hate to use that word, is an art, not a science. It’s a critical skill which must be done intentionally and decisively (not just networking for the sake of networking at random conferences) especially for someone like me who has very limited free time anymore (I have 3 kids).  My network has been the single greatest source of successful dealflow for me in my entire career as an early stage investor and it’s the reason that I spend so much effort in building meaningful and lasting relationships and partnerships which I know will pay me dividends down the line when I’m least expecting it.

When it comes to networking, just like many things in life, the most important thing is to practice patience. Be long-term greedy, not short-term greedy and don’t keep score. Give without expecting anything in return and always provide a disproportionate amount of value to those you are networking with. The minute you stop keeping score is the minute things will start working out. It’s just one of those funny things in life that still pleasantly surprises me to this day.

P.S. Want to start building your network? My company Explorer Equity Group has decided to partner with StartCon (Australia’s largest startup and growth event) to host their Hong Kong pitch event for $1million dollars. The Hong Kong regional final will take place on October 16th, 2018 at Campfire’s Collaborative Space in Taikoo. In addition to seeing the best pitches, you will meet with some of the most reputable investors & entrepreneurs in Hong Kong.  I’ve got free tickets for my readers if interested hit reply and let me know.