Networking Is Not A Dirty Word

Harvard Business School has a program each year during spring break called Westrek. The point of Westrek is to get HBS students out to the Bay Area to meet and greet folks throughout the high tech world. They go to big companies, small companies, investment banks, law firms, venture firms -- whoever will agree to shmooze. I was one of those schmoozers (or was it schmoozees) during Westrek. I spent some time with a group of students talking about the venture process.

The question that interested the students most was how to get their startup in front of a VC ("how do I become a VC?" was a close second). My answer was to know someone who knows that VC. By far the best way to get your executive summary read is to have it sent to a VC by someone that investor trusts. And the key to those introductions is networking. When I got to the Bay Area, I thought that networking was a dirty word. It suggested to me that people were creating relationships for selfish purposes. I have since seen that networking is a symbiotic activity -- good relationships in Silicon Valley benefit both parties.

I invested in a company a couple years ago as a result of some very effective networking by one of the company's founders. The founder was a Cornell grad and through his close relationship with his alma mater was able to meet virtually every influential Cornell grad in the Bay Area. He spent a lot of time nurturing those relationships and was able to translate those friendships into introductions to lots of VCs, including myself. I was introduced to the company by a Cornell grad lawyer who is a friend of my firm's. We were glad to take a look at the company because it was coming from a guy we trusted. He was happy to pass on the executive summary because he believed it was sufficiently interesting as to be potentially fundable (and, frankly, because he hoped to become company counsel when the company got funded). And, of course, the company founder was thrilled to get quality introductions into numerous venture firms -- particularly when one ultimately resulted in the company getting funded. The founders networking proved advantageous to everyone involved.

There is no question that great entrepreneurs are successful networkers. They know large numbers of influential people throughout their industry and have deep enough relationships with those people to solicit help in building their business. So don't think of networking as a dirty word. Think of it as a valuable tool. And don't be shy about making connections that can help you grow your business.

Comments

[Akihito]

Since when has the term "networking" become a dirty word?

I am shocked to hear Harvard Business School students didn't realize how much gets done in this world simply by who you know. Getting a deal done, getting a job, getting your kid in a top pre-school, blah, blah, blah - it's all about who you know. Come on you HBS whiz kids - get beyond Business 101 questions.

[Rob]

It's funny, when I was working on my MBA at the University of KY, they had networking events all the time. I never ever went because I thought they were a waste of my time, and I was smart enough to make it on my own gumption, guts, brains, whatever. Now, I go network at just about any business function or club that will have me. Damn I was stupid.

[Wayne Lambright]

Networking is super easy, all you do is show-up and talk to people, its that simple, if you are shy or just want to improve your skills, I would suggest toastmasters.org, which is another fantastic way to network, infact if you become good, you'll start giving speech's on a grand scale, that's super networking.

If you live in the Bay area, there are many great ways to meet like-minded people, such as commonwealth club, Churchill club, www.theglasshouse.net and Ryze.com just show-up and bring your business cards.

[Franklin]

What do people recommend for those of us who realize the importance of networking, but just don't have the conversational chops to succeed. I, for example, long believed that small talk was a waste of time. Apparently I am far behind the pack in those skills now and I don't find it easy to learn those skills.

Though I haven't joined toastmasters, speeches aren't necessarily a problem for me. I don't mind getting up in front of a group and speaking about something I know about. It is the one-on-one, relationship building conversation that kills me. When in a networking situation, try as hard as I might, I always feel as though other people are forming stronger relationships than I am.

[John Woolverton]

To succeed in conversation requires much more listening than talking, and an actual interest in the other person.

Its a skill that's transferable from parenting. My three year old has many important things to tell me and show me; and while reviewing the differences between two hotwheels cars is not the most intellectually stimulating, I am there for him and take an interest in the things that interest him.

The more I am able to take an interest in others' projects, and encourage without being critical; the more I connect with them.