The Unseen Power of High-Level Networking in Startups

Throughout my career, I've been fortunate to participate in numerous acceleration programs around the world, both as a founder and as a mentor, advisor, and beyond. I've had the privilege of hearing incredibly insightful talks from various industry figures—founders who've made multiple exits, government officials, corporate leaders, and investors. One particular story from a founder with several exits stands out to me. He shared how, looking back, he could identify the five to ten key people who enabled him to reach the finish line. It wasn't the money, the number of customers, the solution, or the technology that made the difference; it was those key individuals at crucial moments.

“It wasn’t the money or technology; it was the key people who elevated us at each stage.” This insight has become somewhat of a mantra for me. High-level networking is the foundation of all business activities, especially for startups. Yet, even though many understand its importance, few truly act on it. There’s a tendency to collect a large number of advisors, but often the quality is lacking. Many startups listen to everyone without critically assessing the advice given.

Let me give you an example. I once worked with a startup fortunate enough to have a major consulting firm as an advisor. This consultant gave them advice on how to enter the market, which aligned perfectly with the consultant’s firm’s interests and capabilities. The startup was eager to follow this advice and change their business model accordingly. However, when I asked them, “Are you capable of executing this strategy? Do you have the resources to customize the software for each client and support them as the consulting firm does?” the answer was a clear and immediate no. This illustrates a critical point: Always align the advice you receive with your own capabilities and resources.

Returning to the importance of high-level networking, the question remains: If we know it’s crucial, why don't more startups prioritize it? Why don't they go all out to secure it when the opportunity arises? One of my biggest challenges today is connecting startups with top-tier individuals, including decision-makers in corporate and government sectors. Yet, despite the evident potential benefits, there’s often a struggle to recognize the value of these connections.

As an advisor, I frequently find myself justifying my opinions against a sea of differing advice. Many founders come to me because they’re struggling with direction, often because the advice they’ve received is pulling them off course. High-quality network connections challenge you, push you towards difficult decisions, and often suggest paths that may seem contrary to everything you’ve heard. But that’s the essence of great guidance—it takes you to places you might not have gone otherwise, leading you toward success.

“Remember, high-level networking is not just about quantity; it’s about the quality of the connections and the wisdom they bring.” If someone offers advice that seems completely opposite to what you’ve heard before, it might be because they have a vision that others lack. Finding quality in your network—people who can truly guide you and propel you forward—is extremely challenging. And this isn’t just my opinion; the market numbers back it up. With 90% of startups failing, the successful 10% are often those that have identified and listened to the right people, making the right choices.

In conclusion, cultivating a high-quality network is not merely an option; it’s a necessity. It's about finding those key individuals who can offer the right advice at the right time and having the discernment to act on it. This could very well be the difference between success and failure in your entrepreneurial journey.