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People, Process, Technology
How a solid process and team drive the value of tech, not the other way around
Plans
“Everyone has a plan until they get punched in the mouth.” - Mike Tyson
Those famous words resonate far beyond the boxing ring.
Today, we’ll apply them to angel networks, and consider why a solid underlying process and team are essential for surviving reality’s inevitable punches.
The Observer Express
Don’t have time to read the entire post right now? No worries, here are the main points:
Paying for a deal management platform or using fancy tools does not mean you have a good process.
A good process makes using a deal management platform/system helpful. Not the other way around.
For a process to work well, a stong operating team is essential.
Cool Tech
Startup investors see lots of cool tech.
Every month, they’re introduced to new ideas and literally invest in many of them.
So it’s natural to also invest in cool tech designed to help run processes.
Angel network deal management platforms, for example, promise streamlined workflows, efficient communication, organized data tracking, and more.
Here’s the Problem
The effectiveness of a tool is only as good as the underlying process it supports.
A fancy boxing glove can enhance performance, but it won’t win a match. Victory is only obtained through the skill, strategy, and physical ability of the boxer behind the glove.
In the same way, the usefulness of a deal management platform is dependent on the process and people standing behind it.
Process Precedes Platform
I’ve seen operators mistakenly believe (whether consciously or unconsciously) that paying for a deal management platform or software tool “automatically” levels up their process.
It doesn’t.
A bad process with a pretty user interface is still a bad process.
On the flip side, a great process is made even better when paired with well-designed tools.
The Human Factor
But where does a great process come from?
Great people.
At the end of the day, angel networks are made up of groups of people.
And people are complicated.
Great leaders enter into that complexity by building processes that are uniquely suited to their community.
And when something “punches them in the mouth?”
They figure it out.
They adapt and modify as the needs of their people change.
They work hard to ensure that both founders and funders have a great experience, no matter what.
Software can’t do that for them.
Final Thoughts
This week I spoke to the owner of a well-known angel network software tool. She told me that one of the main reasons her clients churn is because they’re not running a very good process, and therefore don’t get much benefit from the tool.
No matter how good the tool is, it’s worthless in the hands of a weak team with no process.
Need help assessing and leveling up your process? That’s exactly what Angel Ops is for.
What do you think?
Where do you see overreliance on software? Which angel communities do you know that have the best processes and teams?
Weekly Observations: 3 Lessons Learned
Make time to read a lot.📖This week I was able to have breakfast with a mentor of mine who leads a publicly traded company. He shared how over the Thanksgiving holiday, he got sick and took advantage of being stuck in bed by reading 3 books (all of which were pretty dense). That struck and challenged me because I often find myself so focused on our business that I fail to make enough time to pursue my own continuing education. I’m working on a reading list for next year - any recommendations?
Process tweaks fail to address fundamental issues.🚧Improving processes and addressing fundamental issues require very different execution plans. This week I presented a set of process recommendations to a client and realized during the discussion that some of these recommendations were incomplete. They failed to adequately consider some of the deeper underlying problems in play. While I deeply believe that instituting solid processes and operational structures can drive meaningful change in any organization, this experience highlighted the importance of recognizing when an issue goes beyond process.
Startup investing is sexy.🔥It’s easy to forget how unique and attractive this ecosystem is. This week I kicked off a set of interviews with a volunteer team of analysts serving one of our angel network clients. After speaking with just a few of them, I’m reminded of how sexy the startup investing scene is. The opportunity to be a part of evaluating a diverse range of startups and helping investors make big bets has massive appeal, especially for those looking to break into venture.
Weekly Links: 3 Things I Found Interesting
The Texas Rising Tide🤠| Capital Factory | Texas startup ecosystem report
The 90s are Rad📼| YouTube | The sounds of my childhood
Mountside Ventures🔄| Substack | Fund of funds explained
Thanks for reading, have a great week.
-Andrew
If you enjoyed this post, please share it with a friend, colleague, or anyone else who may benefit.
P.S. - I recently finished creating The Angel Network Toolkit: 90 Resources for Cultivating a Thriving Community of Pre-Series B Investors, and I’m sharing it with anyone who refers a friend.
How did I do this week?
About Me
I cultivate flourishing.
I'm also the CEO of PitchFact, where our mission is to cultivate flourishing specifically through efficient and collaborative early-stage diligence. I'm a proud husband, grateful father, and honest friend. My love languages include brisket, bourbon, and espresso.