David Kenney

The best VCs I’ve met and indeed invested with are humble and ambitious. A unique combination of leader, builders, supporter, and devils advocates. Developing thinking models, for strategy, tactics and execution both at a team and individual level, they understand the impact of clarity for their Founders. Occasionally, the wrong traits or temperaments sneak through the industry in some players . But the very best recognise they have to get to the truth, not defend a position at all costs.

Australia has seen companies like HealthMatch.io with various stakeholders in the medical/Pharma field. Universities like UNSW, USYD, UTS have had some great collaborations with Founders, large corporates but hope to see more. It’s one of the best ways to help Startups. Buying from Startups can be even more valuable than investing in them.

Leadership is not something you were born with. Unfortunately, there is often a vacuum in government and business, which is a recipe for failure in a country with 'Tall Poppy Syndrome'. If you are the type of leader your people need and strive to make them better, you will go a long way. Get comfortable with ambiguity, take risks, bring people along, build them up, and recognise their wins. Step up; we need leaders.

Demonstrate that your capital allocation, hiring decisions, product and market knowledge, sales efficiency and processes are on point. Then audition investors rather than having a begging bowl mentality. Combine a sharp vision, ruthless conviction for the next 5 years and remember to only consider investors who get this.

Leadership, management, operational excellence, brand and integrity are the thing that builds the thing - i.e. value. Cashflow is the measure of efficacy of deployment of your capital decisions. Knowing that you have made sufficient bets on projects with enough time to see them pay off and being able to demonstrate your ‘miss’ percentage on targets being achieved is lowering to the point of real trust makes a forecast a believable story. It’s worth doing this for yourself and invaluable to your sale process.

Assuming you dealing with a rational, intelligent and ethical person is the first mistake. Get to know the buyer, build trust before committing. Be honest about deal tension and alternatives. Finally, keep the documents as simple as possible. If you have to reach for the documents after the deal is done, you are in trouble. Never ignore red flags. Keep going, there are great buyers out there for good businesses.