The French Fries Test

From what we’ve been hearing from the investors whom we know personally, the funding purse strings are opening up again, and mergers are moving forward.

We hosted Jonathan Hakakian of?SoundBoard VC?at last week’s?Online Insights, and part of the discussion centered around changes on how VCs vet startups. Yes, they’re still vetting decks, doing their due diligence and all that, but many meetings are still held over Zoom or some other such platform. Which means that funds have eased the requirements in terms of geolocation. Many VC/Angel firms don’t even feel the need to have a dedicated office. Some use co-working spaces to have somewhere to hold meetings from time to time, and for conference room access. Offices, for both investors and founders, are no longer necessary, at least, in some cases, not until you’ve reached a certain stage.

Jonathan has returned to taking in-person meetings, circumstances permitting, meaning, when it’s geographically possible for him and the founder/founding team. And there are times when they’ll keep it casual, meeting at a diner or restaurant. There is a different dynamic at in-person meetings, but still important to mind your Ps and Qs – and your table manners.

Jonathan told the story of one founder he’d met with at a diner. It wasn’t the first time they’d spoken, and the company had particularly struck his interest. In the course of lunch, the founder/CEO didn’t find the French fries he’d ordered to his liking, and sent them back. Three times. Was it that he’s a perfectionist? Does he pay particular attention to details, and everything has to be just right? The reasons can be interpreted many ways, and for the record, this is our assessment, not Jonathan’s. In the case of the fries, it wasn’t that the third one was the charm. No, that was when the founder attacked the server for his fries having not been to his liking, even though, as Jonathan noted, it wasn’t the server who had prepared the fries, of course.

He didn’t invest in the company. There were points/responses that raised red flags, besides?the founder’s reaction to the fries, although his behavior in that situation and his treatment of the server did have some bearing on Hakakian’s decision.

As the saying goes, the devil is in the details and the French Fry Rule is that basically, everything counts, including your behavior. And the way you treat others – especially those whom you perceive as being your ‘inferiors.’ Let’s face it: you’re a startup CEO and while that’s all well and good, where do you think you’d fall on the corporate totem pole of a Fortune 50? Until you get there, pay attention to the details, be humble, keep building and stay focused.

On everything.

You will hit roadblocks, but that’s par for the course. After all, no one ever said it was going to be a piece of cake. Onward and forward.

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