How to End Things Gracefully
▼ Summary
– The author secured investment by humorously acknowledging potential failure during a pitch, which impressed an investor with their honesty and realism.
– When the startup failed, the team returned 40% of remaining funds to investors and hosted a farewell dinner, strengthening investor relationships.
– This approach led to most original investors supporting the author’s subsequent startup funding round, demonstrating long-term trust built through transparency.
– The author reflects on the startup as a successful endeavor despite its failure, valuing the experience and relationships formed.
– The article concludes with the author’s personal story of TNW’s closure, accepting it as a natural ending and transitioning to new writing ventures.
Ending a venture with grace and foresight can be just as impactful as launching one successfully. A few decades back, while seeking startup funding, I left a strong impression on an investor not only by outlining our potential triumphs but also by addressing the possibility of failure. In a casual follow-up chat, I asked what convinced him to back us. He pointed to a spontaneous remark I’d made during the pitch: “If our predictions fall flat, we’ll use the remaining funds to host a spectacular farewell dinner for all investors. You might lose your investment, but you’ll walk away with an unforgettable evening.”
I hadn’t planned to say that, it just slipped out to lighten the mood. Yet it resonated deeply. The investor found it refreshing to meet an entrepreneur who wasn’t swept away by their own optimism. Showing preparedness for both success and failure signaled honesty and realism, qualities that built immediate trust.
As it turned out, the startup didn’t succeed. True to our word, we organized an elegant dinner for our backers. But we went a step further. Once it became clear our expectations were off, we presented a choice: chase a miracle through pivots and struggles, or return the leftover capital. Everyone preferred the latter, so investors recovered around 40% of their funds, plus enjoyed fine dining and drinks. Years later, when I launched another startup, nearly all those same investors joined the first funding round.
While I would have loved for that initial venture to thrive, I still consider it a meaningful achievement. Trying something new while having an exit strategy built lasting relationships that extended far beyond one business.
Recently, my own company, The Next Web, which I founded in 2006, entered its final chapter. The events and media divisions are winding down, with only TNW Spaces continuing. TNW Programs was sold earlier and carries on independently. There will be no more TNW Conferences, and soon no new articles on the site. People are leaving their roles, myself included. It’s a difficult transition, yet it also feels fitting and logical. After selling TNW to the Financial Times in 2019, we were hopeful and ambitious, I certainly wanted the brand to endure. But when challenges mounted, embracing a graceful closure felt right.
Reading a great book often brings a moment near the end where you slow down, reluctant to finish. I cherish that feeling because it means the journey was worthwhile. Good stories deserve strong endings, and this one has been a remarkable story to be part of.
I’ll continue writing, though this marks my final official piece for TNW. If you’d like to follow along, I invite you to subscribe to my Substack. The topics will be less tech-centric and more varied, but I’ll strive to offer the same depth and insight as always.
Boris, signing off.
(Source: The Next Web)
