Time and Money As a Function of People

Why the people-factor is so key in assessing time-money value.

People: The Uncertainty Factor

Last week, Fred Wilson wrote a post about time and money, and how to value each of them against one another within the context of investing. In it, he broke down a series of considerations which each impact the time-money balance. Rereading through it again, though, it occurs to me that a lot of Fred’s considerations also point to another, perhaps more subtle factor: people.

The Value of Evaluating Relationships

Yet as Fred notes, the reverse is true too: founders are just as much playing a “game of people” as investors are — the return on an investor’s value to a founder most times goes far beyond the money. The investor is similarly in the position of proving to the founder(s) that s/he is able to balance his or her portfolio while still delivering the necessary value to the startup company.

Who You “Click” With

The evaluation of people — being able to discern who you “click” with and the type of personality which best fits your portfolio (or startup) strategy — is key in evaluating one’s time commitment to a project. The time-factor, which Fred articulates should be priced into early-stage investing math, can in fact be thought of as the people-factor. In the early stages especially, the clear dollar value of a company may not be readily apparent and some other — perhaps less tangible — metric may be necessary to consult. This is the people-assessment — this is the scenario in which investors are rife to say, “there was just some ‘It’ factor about her resilience” or “her charisma just sold me on the idea.”

Master Relationship Builder & Networking Consultant 🚀 | prev. CEO @glipple | Published @crunchbasenews, @Startup Grind, @Mattermark| Humorist & music addict

Master Relationship Builder & Networking Consultant 🚀 | prev. CEO @glipple | Published @crunchbasenews, @Startup Grind, @Mattermark| Humorist & music addict