It’s often said that a CEO should focus on three key things: Do I have the right people on the team? Are those people working on the right thing? And is there enough cash in the bank to keep the lights on? The right investor should help a founder with all three of those questions:
1. Do I have the right people on the team? The best investors are instrumental in helping founders recruit the perfect team. For key positions, they should jump in and pitch a candidate to join a portfolio company. Secondly, investors should spend enough time discussing hiring priorities with the CEO, as well as help craft target profiles for senior-level hires.
2. Is the team working on the right things? An investor should serve as a critical sounding board during strategy discussions… In those discussions, the best investors are great listeners and rather ask the right questions than provide all of the answers.
3. Is there enough cash to keep the lights on? Great investors have a large network to pull from and make very specific introductions.