A common expression in the startup world is: “investors are, at the end of the day, like cheerleaders on the sideline”.
I see what it’s trying to say – it’s the founders who are fighting in the arena, investors shouldn’t pretend to know better about their business, etc etc.
But I think the expression has a caveat – it might sound like the founders and investors aren’t part of the same organism.
I think a better analogy could be – investors are like the roots.
- Roots are part of the same tree. If the tree fails, the roots fail too. They’re on the same team
- Roots are invisible, they’re not the ones doing the day-to-day work, but provide important resources and nutrients
- Roots can serve many trunks and branches, just like a fund can serve many portfolio companies
- Roots have seen the seasons before. Roots have seen leaves and fruits come and go. Roots have the wisdom
- Roots are often connected to one another, like the Pando. Investors can connect companies to the wider ecosystem
Founders don’t need audience clapping from the stands – they need capital, resources, mentorship and guidance.
In other words, the roots.