Find Hands-On Investors to Help Grow Your Startup

One thing I've learned while becoming an entrepreneur and looking for funding is that there are drastically different types of investors out there. Money is not just money. Yes, if you only have one option for capital (which can frequently be the case), then by all means take it (if you need it). But if you have any choice in the matter, there is a gigantic difference between passive investors and hands-on investors. I don't mean that just in terms of how much time they spend looking at your business and helping you grow, but also whether or not they're hands-on in your market.

If you're a web company, for example, it's great to have an investor who blogs, experiments with web services, loves the Internet, and is an active participant in your field. These "hands-on" investors can get you a lot farther than somebody who is only looking for a financial return and is indifferent about your market.

This is more applicable to early-stage companies, where the path is treacherous and a lot of work is done molding and building the business. For more established companies that need growth capital, it's not as important where the money comes from as long as there aren't too many strings attached. But if you're an entrepreneur or an aspiring entrepreneur looking for cash, try to find a hands-on investor who knows and loves your market. It'll make a big difference.

You can read more about Keith on his personal site, Keith Cowing: The Journey of Entrepreneurship

San Diego

I took a brief trip to San Diego with my wife this weekend. She was in Southern California during the week for work, so I decided to meet her out there and enjoy the weekend. We ate great food, enjoyed a little sunshine (though it did seem cloudy for sunny California), went kayaking, visited the zoo, toured La Jolla, and uh...ate a lot of great food. It was a quick trip, but it was definitely refreshing. With a hectic schedule and a lot of things to think about, it's hard to get away. But sometimes a quick break can help you reset and hit the ground running again. Right off the red-eye Monday morning I was directly into a full day of work. But for that brief weekend I was at peace and over the next couple weeks I'll be more productive as a result.

You can read more about Keith on his personal site, Keith Cowing: The Journey of Entrepreneurship

Turning Down a Job in a Shaky Economy

I had some great experiences this summer. I spent a few weeks working for a web company and the remainder of my summer working for a consulting firm. I also raised funding for my own startup and officially launched the business. That brings me to the point of my post, which is that I turned down a solid job during the worst economy I've seen in my lifetime. Technically, I actually turned it down before they could give it to me. Sure, I might be crazy. But I'll tell you what happened.

During the summer, I was presented with a tremendous opportunity to pursue my dream of building a business. It was an opportunity that might never resurface and it was a perfect time to turn my ideas into a living, breathing company. That being said, I decided that I would not accept a job offer from the consulting firm even if I got one. So it wasn't useful for anybody, including myself, my fellow interns, and the firm, for me to be in the pool of applicants anymore. This was not the case when I signed up for the internship in February. But given where I stood in August, I wanted to be open and honest. I explained that I had decided to pursue something else and, given the situation, I felt it was right to leave the job offers for those who really wanted them.

Perhaps my actions were unnecessary. It always feels good to get a job offer and companies don't want to be turned down. But the firm took it surprisingly well, expressed appreciation for my candor, and said that we could stay in touch (especially if my company took a nose dive and I was suddenly on the job market again). Sometimes you have to push your ego aside and do what feels right.

Of course there's the other issue. We're in a very shaky economy, entering a time of uncertainty, and I turned down a solid job. I have a wife, a dog, and in a few years will probably have kids, all of which are reasons to have a stable income and reliable cash flows. But instead I decided to take the home run swing, chase I what I love, and see what happens. I guess that's the spirit of an entrepreneur.

You can also read about Keith on his personal site, Keith Cowing: The Journey of Entrepreneurship

Introducing Keith Cowing

As a two time Cornellian, I love it here in Ithaca. I received my bachelors in Electrical and Computer Engineering and worked in engineering, marketing, and project management. After experiencing Silicon Valley and Wall Street, I came to the Johnson School to pursue my passion for entrepreneurship. Now I'm the founder and CEO of a venture-backed startup (a lot can happen in your first year at business school). Life gets a little crazy with a business, a wife, a dog, classes, exams, and a number of interests. But that's what makes the ride worthwhile.