Dragons Den or the Shark Tank is a hugely popular show across the globe, where a panel of successful entrepreneurs are given the opportunity, after a short presentation and Q&A session from the founder, to invest in a business, for a share holding. This investment represents the cash injection, access to expertise, contacts or just help they need to provide them with the opportunity to take their business to the next level.

The parallels between this investment choice and the interview process are not lost on us here at PYP and as a result we went and found our own Dragon or Shark, a highly successful Venture Capitalist (VC), who does exactly the same and asked them a few questions regarding their decision making process. With some interesting results!

For obvious reasons the VC didn’t want to give away too many of the trade secrets of their highly competitive and rewarding business activity and as a result they have asked to remain anonymous. We obviously however, thank them hugely for their time and valuable insight into their decision making.

PYP: At PYP we stress the importance of that first impression when someone walks into the interview room. How big is that first impression when you meet someone, despite all the research you may have done?

VC: This is a really interesting question, and you are pretty much spot on. We are investing as much in the person or people, the whole the management team, as they are the business. The earlier the business the more founder centric we are. There is plenty of data that suggests it is all about the jockey and not the horse! In reality, that is a decision that you make in the first thirty seconds. We then spend the rest of the time trying to establish all the challenges, pitfalls and reasons not to invest. We need to be as certain as we can be that the decision we are making is the right decision for all involved!

PYP Note – Interviewers are doing the same thing. You are in the room as you have passed the vetting process, now you have the opportunity to make a good impression and support that by demonstrating your expertise, knowledge to reduce or remove the risk of hiring you.

 

PYP: You have said that you invest as much in the management team as you do the business. What are the things you are looking for in a high performing, investment worthy team?

VC: The first thing I look for is respect between the team members, no talking over in the meeting for example. It is also important that the team all agree on the vision, or it is clear so that any disagreement is dealt with in a constructive and healthy way. The diverse nature of the businesses we invest in means that we cannot be an expert in every business, so we expect them to represent the knowledge the business will need to be successful and this needs to be evidenced in the business plan or track record. There is however a great deal of investments that we make in start up businesses where people have great ideas and a vision of the value their product or service is going to bring. In these instances we are looking for passion, energy commitment and the ability to take people with them as the business grows and they start to realise that vision.

PYP Note – Interviewers are looking for that same respect, passion, energy and the ability to engage with people, those vital communication skills. They are not necessarily expecting you to be the fully formed package or have all the answers at the interview stage but demonstrate the ability that you can be!

 

PYP: You are obviously a successful and experienced investor, can I therefore ask the difficult question, one that people struggle to articulate. How much of your decision making is based on gut feel? 

VC: This supports the previous response as there is always an element of gut feel in every decision, the more people you meet and investments you make the more mature your gut feel becomes. Everyone knows that a deal that sounds too good to be true generally is, so you are looking to find an opportunity to invest that has significant growth opportunity and where you feel that your investment, advice, and support will make the difference the team and the business needs. We see over 3000 ideas a year and invest in roughly 15. Over 20 years you create filters as it is as much what you don’t want to see as what you want to see. We are looking for evidence, which is rarely obvious, why the founder will have an obsession and resilience beyond the norm.

PYP Note – Interviewers are using their gut feel to make decisions about whether they can work with you, want to invest time in you, want you to be part of their team and add value. They will likely have interviewed many people before and despite any scoring matrix, gut feel will make up a large part of their decision making. Differentiate yourself, stand out from the crowd and make yourself memorable!

 

PYP: When someone is pitching their business to you for your investment, it is very like an interview that we work with people on. Is it really a lower key version of Dragons Den and what are you looking for them to demonstrate in that time? 

VC: As you say they need to articulate their vision well, if they can’t sell it to us in a one to one conversation, they won’t be able to sell to many! We look for the founding team to really understand the customer and how their product or service fit into their day, what they read, where they hang out and why the product/service they are using at the moment is not fit for purpose.

PYP Note – You get one shot to articulate your personal value proposition and the value you can bring, demonstrate your understanding of the employer and their market sector and why you are the best person for the job!

 

PYP: This one is more focused on leadership than recruitment. As investors you guys are largely hands off in the business you invest in. How do you find that generally, being in a position where you have to back your opinion of people and then leave them to get on with it?!

VC: We are backing them to execute on the vision, we are not investing in them to execute on our vision! We are very much there to advise when asked and we have an ecosystem of other founders who can also help them. We never offer to add value because that sets an expectation, but we hope we do! Where we are probably most helpful is on senior hires and next fundraises.

Our proven track record would suggest that if you make the right decisions in terms of the people you invest your money and time in, then you just need to let them get on with delivering their business plan. It is not about getting in their way and having too much involvement, but about being there to provide guidance and support in the areas that they need help in or if circumstances change. Like a new hire, or leader being given a new or expanded role, you made that decision for a reason so try not to impose yourself too much.

PYP Note: Leaders and employers, if you hire the right people for the right reasons, support them and let them grow. Give them the platform for success and be there to guide rather than stifle them, remember why you hired them, what you saw in them and help them realise their potential.

 

PYP: If you had one piece of advice for someone looking to secure an investment, in either a new business or themselves, in terms of a new job or promotion what would it be?

VC: Have real clarity around your vision and why it is needed, nice to have is not good enough, work out how to attract and retain the best possible team and be obsessive about giving the customers what they need. The all important product market fit.

PYP Note: There is some great insight in this interview for people facing meetings of any kind, not just interviews. It is great this aligns with the overall PYP message for clients to understand not just what you want to do, but why you want to do it and have a plan of how you are going to do it. You need to be able to clearly communicate the value you are going to add and the benefits you bring to differentiate yourself, stand out from the crowd and make yourself memorable.