What Do Investors Want? A question which every start up organization asks. However, the questions asked are always in terms of funding, returns, break even etc. As less as only 20% founders talk about the investors’ want from a talent perspective.
Few myths that persists in the industry are :
- Investors look for only pedigree : In my recent discussion with a panel of investors from the top notch investment firms, we spoke about the real investor wants. Yes, it is RETURNS but through the right talent. Investors do not want to see just pedigree, they want to see a bunch of passionate high performers who can yield results and the aspired returns.
- Investors are specific about hiring their referral candidates : Very often during the hiring process, I have heard founders stating that a specific candidate has to be hired because he/she is referred by one of the investors. Do the investor really want it? I don’t think so. By choosing the referral candidate directly, I think an organization just demonstrates the laxity in hiring the right talent. There is no harm in evaluating the candidate along with all other suitable candidates for the position. What the investor really wants – is hiring the right talent
- Investors are not bothered about day to day operations : This may be true to a certain extent in a product based organization. However, in a services company, investors would be keen to see consistent enhancement of operational efficiency. They may not be involved in direct operations but would have an eye to see the impact of the same in the overall business goals. It is of paramount importance for all investors to see how cost is optimized sustaining superlative standards of quality and brand value.
- Investors do not pay heed to Capability Building : The investors may not directly ask for a report on performance management and capability building, however, a consistent effort, plan and implementation of capability building and a well managed holistic performance management model definitely rings the bell. A skilled talent pool ensures consistent superlative ROI
- Investors consider HR as a support function : Gone are the days when HR was an Admin. The role of HR has evolved to a Business Partner role and investors do want HR SPOC to be aligned to business. Headcount Forecasting, Resource Utilization and overall Talent Plan has to be in sync with the Business Plan. Alongwith other business priorities, it is of paramount importance for all founders to focus on People Perspective and have a strong HR team