My friend, investor, and longtime mentor, Brad Feld, recently released his new book, Give First: The Power of Mentorship. “Give First” means simply trying to help anyone, especially entrepreneurs, without expecting financial compensation or anything specific in return. It’s not altruism because you expect to get something back, but you don’t know when, from whom, in what form, in what consideration, or over what time frame. Fifteen years ago, Brad gave first to me. I recently wrote him a letter to share the impact of that act, and I’m now sharing it here as a powerful example of how Give First can change lives, shape the world—and even generate a 5x financial return.
Dear Brad,
Congratulations on the release of your new book. I am writing this letter to help you promote this book, not just because I like helping you, but because I believe in the philanthropic ripple effect of the Give First principles. I’m not sure if or how this letter will help others, help you, or help me, but I am certain that the time I spend writing will come back to me in spades. Thank you for helping me see the power of taking these leaps of faith.
Fifteen years ago, you took the time out of your busy schedules to answer a cold email from me, a 29-year-old, no-name entrepreneur new to Boulder, Colorado, looking to plug into the startup community. After five years of pushing water uphill with a rake, I had decided to throw in the towel and shutter my first startup. My confidence was shaken, and I was physically and mentally depleted, but I had a sense that I could take the lessons I’d learned to carve out a new path from the ashes of my failure. I sent you an email that said something like this:
“My name is Elizabeth Kraus. I am looking for new opportunities after leaving my first startup last year. I have time and a little bit of money to invest. I’d like to help some of the companies in our community, but I’m not sure where to plug in. Can you help me?”
You made a few introductions to local mentors who you knew would help point me in the right direction. Those mentors each gave me the gift of kindly candid feedback and helped me realize that I was a better investor than entrepreneur. I took the $50,000 I’d set aside after shuttering my startup and figured out how to convince other, more experienced investors with much deeper pockets than I had to join forces with me. I did it by simply asking myself, “How can I be helpful to this person?” and then delivering good deeds without expecting anything in return. That approach helped me build a trusted network of angel investors.
I utilized that network to launch a fund and, subsequently, I recruited over 200 investors and 400 mentors to establish an accelerator and fund called MergeLane. We invested in early-stage startups and venture capital funds led by at least one female leader. Together, we’ve supported 54 companies and five venture capital funds. Your firm, Foundry Group, was the first investor in our first fund. To date, we’ve delivered a ~5x DPI (distributions to paid in capital) to you to date. I hope it’s the first of many checks we’ll send your way.
I think it is safe to say that the five minutes you took to answer my email were worth your time. I imagine you’d also say the check you received is only one small reason why. Together, we’ve helped hundreds of entrepreneurs and supported dozens of philanthropic causes we both care about.
I’ll remember this story every time I consider taking a few minutes to help someone who has the potential to create a ripple effect like we did. I’ll also remember it the next time I feel self-doubt. As you know, I’m embarking on a new life chapter, and I often wonder whether I’m up for the challenges. Yesterday, I was feeling defeated because someone I admire told me I wasn’t “strong enough” to tackle one of those challenges. For a moment, I was afraid he was right.
Today, I can’t believe I thought for even a second that he might be. I accomplished what I have so far with $50,000 and a few answered emails from people like you. Today, I’m smarter, stronger, better capitalized—and I have the personal cell phone numbers of hundreds of people like you. Thank you for helping me see that. Just another example of the unexpected gifts we receive from Giving First.
Onward and Upward
