Entrepreneurship and the Power of Optimism
Entrepreneurs, and those of us who invest in them, are by nature optimists. Who would undertake the Herculean task of starting something entirely new unless they believed in the future, in the idea, in themselves?
Being optimistic can be the key to entrepreneurial success. The world doesn’t care about new ideas or new companies. It is indifferent, if not antagonistic. A new company must bear the weight of change: pushing to get people to buy into a transformational concept to try something new to take the risk of the unexpected. It is exhausting. Only optimism, the belief that progress is possible, perhaps inevitable, can counterbalance that load.
Startup success is often about endurance as much as it is about innovation. Innovation comes and goes with the rapidity of lightning bugs. The startups that last are often led by humans so optimistic that they simply won’t quit. Against all evidence and all odds they still believe they can reform the world to their conceptions. And, if they persist long enough, sometimes they can.
We have just seen this in two of our portfolio companies. In both cases, during this long hot summer of falling funding, rising costs, and flat sales, these companies looked like they were nearing their demise. Both have gone months without obtaining financing they desperately need. As a result, both have had to cut back on marketing and other costs so radically that growth has vanished. Both the entrepreneurs have been tuckered out, started to doubt themselves and their products, and taunted, tortured, ghosted, and flat-out lied to by potential partners and investors. It hasn’t been a pretty picture.
And yet…
One company, within days of filing to dissolution, met a unique super-wealthy angel investor. All he wants to do with his money is find “won’t quit” entrepreneurs who are in the weeds so that he can use his powers to help them get out. He funded the company when others wouldn’t and gave the CEO the boon companion she desperately needed.
The other entrepreneur has been left at the bar by dozens of investors, even though the product is dramatically unique, got rave reviews, and achieved impressive distribution. The company literally did not have the cash to fulfill for its breakthrough customer. It looked like the startup would just bleed out slowly, leaving the CEO with a pile of regret and debt accumulated while keeping the doors open.
But she never gave up. First, she found an obscure fund in Hong Kong that seemed impressed and offered her all the money she needed (verbally, at least). Then a specialized accelerator run by former bigshots from global brands offered to take the company in, pay all the bills, and help her grow. Along with that, a renowned brand builder offered to come in as a white knight and work their magic to make the company a household name. Nothing for nearly a year, and then three intriguing options in the span of two weeks.
Optimism, and its buddy grit, may have saved these two companies. Optimism is an essential superpower for entrepreneurs.
By Managing Partner Mike Edelhart
@MikeEdelhart
Related Posts:
The Surprising Correlation Between Happiness And Grit
The Summer of Our Disintegration: How To Keep Your Head While Everyone Else Is Losing Theirs
The Pink Elephant Pitch (aka How to Turn Off a VC)
