It’s a Festivus Miracle — For Entrepreneurs

If you are an Entrepreneur or Investor and love Seinfeld, you will love this! 

It’s a Festivus miracle! As the CEO and Co-Founder of TOOMZA, I have dedicated this article to celebrating the “Airing of Grievances” and “Feats of Strength.” In my travels as an entrepreneur I have encountered many an investor, whether in person, or in print, who take the opportunity to leverage in a public display their “Airing of Grievances” towards entrepreneurs.

In the continued spirit of the Festivus holiday, I will embrace the age-old tradition of the “Airing of Grievances,” however I will turn the tide of yule towards the Frank Costanza-like investors of the world, who enjoy stealing every little bit of joy and hope that we as entrepreneurs hold onto.

Looking back over 2013, these are three of many grievances that I have chosen to air. I have also provided three feats of strength for entrepreneurs to remember as they ward off the Frank Costanzas’ of the world.

1. Investors who don’t take the time to read or listen – I recall one time having a phone call with a senior level executive from the venture-arm of a fortune 500 company. Prior to the call, this individual asked me to send along an executive summary for their review. It became apparent very early in the conversation, that this individual had neither read the executive summary prior to the call, nor listened to my elevator pitch at the beginning of the call. When this individual cut me off mid-sentence and replied “If I were to develop a product like yours, I would do the following…” It shocked me when this person repeated verbatim exactly what I had proposed to them in the first place. Whiskey-Tango-Foxtrot!

2. An investor’s requirement for an entrepreneur to be introduced through a mutual colleague – I do understand and appreciate the value of being introduced to a potential investor through a mutual colleague; I have experienced and benefited from this personally. However, I did recall the unpleasant experience of reaching out to investor, who actually took the time to respond to me in writing, to let me know that they only speak to entrepreneurs who are introduced to them via a mutual colleague. Really? I think the only thing worse that could have happened, was this individual picking up the phone and calling me to communicate their policy on introductions! SMDH!

3. Know it all investors – This past year, at a local event, I had the unfortunate opportunity of meeting the know-it-all of know-it-all investors. After introducing myself, and giving them a quick overview of my business, this investors took the opportunity to, berate me with every baseless reason they could think of as to why my business would never work, in addition to provide me with every piece of useless advice that any entrepreneur could stomach to listen to. When I asked him the simple question of how many investments he had made recently, he stared at me like a deer in headlights. “Serenity now, Serenity now!”

The “Feats of Strength”

1. Strength is in numbers – Today’s entrepreneurial environment is much different than it was even several years ago. The introduction of the JOBS Act has shifted the “balance in power” more towards the entrepreneur and less towards the traditional investor. With the advent of crowdfunding platforms like Kickstarter and Indiegogo, traditional investors may need entrepreneurs more than entrepreneurs need traditional investors.

2. Investors should be careful of how they treat people and what they say! – The recent “tweet heard round the world” by a now unemployed Justine Sacco, is a great lesson for the Frank Costanza-like investors of the world. A well-liked and respected entrepreneur armed with a twitter account can easily throw a monkey wrench into any investor’s finely tuned machine. A word to the wise for the arrogant investors out there. Don’t be so arrogant that one ill-conceived or off-the-cuff comment to an entrepreneur can take you from hero to zero in a matter of minutes.

3. Realize the only thing that separates you from them, is one successful exit – As an entrepreneur, you are probably in the same position that they as an investor, were not too long ago. What separates you as an entrepreneur from them as an investor is one big paycheck! And you, nor should they, ever forget that! Stay determined, stay resilient and always accomplish the mission!

Michael A. Morgan, PhD is the CEO and Co-Founder of TOOMZA, a reward based platform where kids play, learn and earn rewards in their favorite online games and apps. Dr. Morgan received a PhD in Biochemistry. He has held senior scientist and management positions both in the private and public sector.