I posted a tweet that generated a slew of DMs asking me to share specific details.
Wish granted:👇🧵
Wish granted:👇🧵
2/11: The Appreciation
The email intro was complimentary but sincere. The Founder wanted to thank me and the broader QED team for the work we put into diligence and for allowing him to interact with our team. He referred to the process as an “invaluable learning experience”.
The email intro was complimentary but sincere. The Founder wanted to thank me and the broader QED team for the work we put into diligence and for allowing him to interact with our team. He referred to the process as an “invaluable learning experience”.
3/11: The Apology
The meat of the email was a broad apology. From QED’s perspective the final diligence conversation didn’t go smoothly and it’s obvious from the message that he agreed. And his apology wasn’t generic --- it demonstrated that he knew why it didn’t go well.
The meat of the email was a broad apology. From QED’s perspective the final diligence conversation didn’t go smoothly and it’s obvious from the message that he agreed. And his apology wasn’t generic --- it demonstrated that he knew why it didn’t go well.
4/11: Directly from the email:
5/11: The Secret
The last part of the email revealed the strength of the relationship that we had built during the diligence process. He shared vulnerability and was seeking advice.
The secret was that he was parting ways with his co-Founder and abandoning their business idea.
The last part of the email revealed the strength of the relationship that we had built during the diligence process. He shared vulnerability and was seeking advice.
The secret was that he was parting ways with his co-Founder and abandoning their business idea.
6/11: The decision wasn’t easy because they had been refining their business plan and pitching their dream to investors for the better part of a year. But their relationship wasn’t merely a business relationship. They had known each other for years.
7/11: He shared that the fundraising process was eye opening and that conversations with people like me helped him make his decision. Over time he concluded that the business he was pitching with his co-Founder was flawed and needed a major overhaul.
8/11: The rub was that his co-Founder wanted to chase the idea as-is. A term sheet from a Tier 1 firm had hit their desks that would give them enough capital to get started.
9/11: Tough conversations with his co-Founder followed. And when it became obvious they didn’t see eye-to-eye, he felt it best to part ways before being stuck to each other and to a professional investor.
10/11: He shared that he would feel extreme regret if he labeled himself as a quitter which is why he made it clear to be that he wasn’t technically quitting. Instead, he was starting his own company and welcomed my guidance if I were willing to help.
11/11: There are many fundamental learnings about human nature and the strength of relationships that Founders and VCs can derive from this situation. But the Bard said it best:
“This above all; to thine own self be true”.
“This above all; to thine own self be true”.
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