I had the opportunity to meet about 20+ entrepreneurs at the Plug and Play Tech Center, an accelerator and coworking space in Sunnyvale. This cohort was 2 sets of companies in the IoT (Internet of Things) space. Companies ranged from those in wearables, healthcare, connected car and home automation spaces. There were none in the industrial or commercial IoT area.
The startups were trying to get a sense for the changed funding landscape for startups and how to manage the new set of investors they had to deal with. Many in the connected car space were also talking to “strategic investors” such as the automakers themselves to get a sense for their interest to fund startups.
There was a question that one of the startups asked, which was they were adviced by a mentor who was a venture capitalist that “If we get funding from a strategic investor, then it will be viewed as toxic (sic) since we have to build to their needs”.
I am not sure of the context of that discussion, neither do I know about that investor’s background or intent, but this seems like poor advice at the outset. With more context and analysis I might learn more, but at the first glance, this is poorly construed.
I think the best way to deal with experts who provide advice professionally is to resist the temptation to dismiss it rightaway or the desire to take it at face value and implement it rightaway.
Surprisingly I have found that most entrepreneurs actually “forget” the advice and seek out to experiment and find their own answer. That’s goodness, but it begs the question, how do you remember to seek what you learned?
So the problem as most people realize is that (like with storing and sharing good things at home) the problem is not storing, it is retrieving.
How can you recall the right advice when you need it?
Some decisions we make are fairly quick and provide us with very little time to process. Most decisions we make as entrepreneurs take require a longer lead time than a day.
The best way I have found to recall information an advice is to ask it again in context, instead of trying to remember what was said before and assume no judgement or bias before asking for a framework to think about the decision.
That way it gives you the ability to recall in context.
This surprising tactic means you should ignore all the advice you get and filter most of it as entertainment.
Which, if you are an entrepreneur is a much needed distraction.