then re-open investment consideration. For most savvy investors, “no” usually means “not yet.”
In fact, that is the official policy of our venture management group, Alyeska Venture Management. We never say no to an investment request, except in very rare circumstances. We will say “not yet.” After a careful review of entrepreneurs’ requests, we tell them what we believe they need to hear from us, so that they are ready for investment. We want Alaska entrepreneurs to be ready for investment, because we want them to build great companies. Alaska needs entrepreneurship to expand, and we know that many entrepreneurs need investment capital.
Many of our fund members and all of the fund managers have been entrepreneurs. We understand an entrepreneur’s eagerness to receive funding for their business and to move forward. However, as entrepreneurs we have learned that sometimes to speed up, we must slow down.
Because we want Alaska entrepreneurs to succeed, we will tell them what we believe they need to do for their businesses so that they are positioned for success. When we are convinced that they are, it is much more likely that they will receive an offer for investment.
One good reason that Alaska entrepreneurs might seriously consider our reply if we say, “not yet,” is that our advice might increase the odds of success and we might even divert them from a difficult situation like the one described above. We don’t want this to happen. That is why we give our best advice at the same time that we say “not yet.” And in fact, entrepreneurs should expect that they will hear “not yet” from us. It is very rare that a business comes our way that does not need at least some modest revisions in our opinion. We want to make businesses stronger, and to help Alaska entrepreneurs grow their companies on the right footing.
Just as it is said in carpentry, it is true also in starting a business: Measure twice, cut once. This might tax an entrepreneurs’ patience, but it is a very good rule to follow in business planning. It is understandable that entrepreneurs, in their excitement for their terrific new business opportuity
"Alaska needs entrepreneurship to expand, and we know that many entrepreneurs need investment capital"