Die with Honor: Think Long Term & Go Down Fighting

I have a lot of portfolio companies and the reality is not all of them do well or survive. I end up counseling many founders to make the hard decision to shut down their business. They are always surprised when I am supportive of shutting down. “Don’t you want your money back?” they ask. 

I always answer: “Yes, of course. But I know the odds of success are very low. And I also know how hard and challenging it is to do a startup. I lose money, but you lose time. As long as you did your best I’m okay. I get most of my wins and returns from a very small subset of companies that more than make up for my losses. That is the game.”

I remember a VC friend of mine talking with his portfolio companies. “Die with Honor.” As long as you do your best, communicate well and shut down properly by taking care of your customers and employees, you will always be a backable founder. Past investors will be more than willing to invest in your next startup or help you in whatever you need. 

This is why I am such a fan in general of the OG investor mentality in Silicon Valley. We are ultimately investing in the arc of an entrepreneur's career. To re-quote Maurice Levy of Goldman Sachs: “We’re greedy but we’re long term greedy!” :)

This is why transactional people don’t do well in the long run, whether as founders or investors. The money comes and goes. The lesson ultimately is to think long term, do the right thing and value your reputation, as that is all you really have. Be long term greedy!