Winning On First Calls

In the world of Venture Capital, first impressions aren’t just important—they’re often decisive. Many new and junior VCs underestimate the critical nature of their first call with a Founder. But seasoned Investors know that these initial interactions can make or break their chances of being allowed to invest in the best of the best startups.

The First Call Conundrum

First calls present a unique challenge for discriminating VCs who invest in a fraction of a percent of what they see. First calls are at the base of the pyramid and can be treated as a “volume game” by inexperienced Investors. And if you’re a generalist Investor, it’s very easy to treat them as an “introduction to a problem statement” exercise.

But great first calls aren’t just about gathering information. They’re about demonstrating value, establishing credibility, and positioning yourself as the ideal Advisor for a Founder’s journey. And if a VC doesn’t do these things extremely well, they might end up losing the opportunity to invest before even getting a chance to dig in.

The Spectrum of First Call Outcomes

Like almost everything in life, the quality of a first call will fall someone on a “bad to good” spectrum.

BAD OUTCOME

you’re likely to be relegated to “I don’t want their money” status by a Founder if on the first call you exhibit these behaviors:

– Showing up unprepared or asking basic questions about the business
– Focusing solely on extracting information without offering value
– Displaying ignorance about the industry or market dynamics
– Rushing the meeting and appearing like a volume shop

NEUTRAL OUTCOME

you’re likely to push judgment by a Founder to future interactions if on the first call you exhibit these behaviors:

– Coming prepared with a basic understanding of the company and industry
– Balancing information gathering with sharing some insights back
– Leaving the Founder with a sense of optimism and clear next steps

GOOD OUTCOME

you’re likely to become a “preferred lead or desired tuck-in” if you exhibit these behaviors:

– Demonstrating deep knowledge of the space and the company’s specific approach
– Asking insightful, penetrating questions that show genuine understanding
– Sharing valuable insights and theses that resonate with the Founder
– Being a known and desired Investor with a personal brand and track record that’s easily referenceable in the Founder and Investor communities

The High Cost of Under Preparation

VCs who come to first calls unprepared pay a hefty price. By spending valuable time extracting basic information, they inadvertently signal their lack of industry knowledge and limited ability to add value beyond capital. And this advice is doubly true for Principals trying hard to win deals. If you schedule 30 minute calls and don’t exhibit relevant knowledge to the Founder on the first call you’re starting with one foot already in the grave.

In contrast, well-prepared VCs can use the first call to validate their expertise, demonstrate their potential as strategic advisors and build instant rapport and trust with the Founder. What it takes to win on the first call may seem out of reach for most generalist Investors (or most Investors full stop) but it’s what Founders are looking for. They want someone who they could imagine asking for help and advice from over the next 7-10 years!

TLDR: In the VC world, winning on the first call isn’t just about making a good impression – it’s about positioning yourself as the ideal partner from the start. By coming prepared, offering genuine value immediately, and demonstrating deep understanding of the challenges a Founder is likely to face, VCs can set themselves apart and gain a significant advantage in competitive deals. Remember: In Venture Capital you’re looking for the extreme outliers and the best companies and best Founders can choose to turn you down!