A Word Of Caution From Jared Hecht

Steve and JaredBecause trolling blogs often uncovers sterling material, it comes as no surprise that Jared Hecht’s recent authored piece should enjoy some circulation. Wait, Jared Hecht? The GroupMe co-founder. (See the picture? Guy on the right.)  On Monday he wrote on his blog how having too many investors for funding (a so-called syndicate) doesn’t really translate well when it comes to an entrepreneur’s work. See, it’s a simple mater of having to keep in touch with so many people at the same time looking after the details of a company. So not to get over-stressed, Hecht ended succintly by stating that it’s best to stick with a core gorup of mainstay investors who’ll really be around every step of the way.

The payload from Hecht:

 I think 3-5 really active investors is manageable, and most productive. After that, you hit diminishing returns.

Some investors can help with specific problems, and most will always answer and help when called upon, but very few will be by your side every step of the way.  My advice to those with big syndicates would be to not worry about managing everyone, just find the handful that really help and want to be most engaged and leverage that.  The worst thing to do is to waste cycles trying to get disengaged people to help when you can extract more value from those that are willing

Via: Jared Hecht