The Nuance and the Need for Founder Outcomes

The Nuance and the Need for Founder Outcomes

out·come

/ˈoutˌkəm/

noun

  1. the way a thing turns out; a consequence.

    “it is the outcome of the vote that counts”

Every founder’s journey is as unique and complex as the founders themselves. While needs vary, one thing is consistent: the blood, sweat, and tears are willingly shed (typically alone and behind closed doors) at the chance to achieve their desired outcome.

As global funding jumps 111% YOY, competition amongst investors has intensified, giving founders more options and leverage. As a result, founders are looking for more from their investors – not just a check. As they should.

As a firm made up of founders and operators, Seven Seven Six welcomes this shift and believes it can’t come fast enough for (all) founders.

Many founders liken choosing an investor to getting married – it’s that meaningful of a connection. But few think about how the qualities of healthy marriages also apply.

Healthy marriages are built on mutual respect, trust, equality, honesty, compromise, clear communication, support, and those extra little things that keep the relationship growing.

At Seven Seven Six we take our role in these two-way relationships seriously. That is why our first internal function at the firm is something that is a bit new for the ecosystem: Founder Outcomes.

We deliberately put our founders and their desired outcomes front and center and design accordingly. It is vital that founders feel celebrated and supported. The ongoing success of Seven Seven Six starts and stops with our founders.

Our 3 guiding principles:

1️⃣  We are designing for our founders’ holistic experience, not ours

2️⃣  A founder’s journey is not linear, and we’re here for all of it

3️⃣  Founders need great outcomes, not great intentions

The 3 key focus areas for outcomes:

  • Founder Experience
  • Founder Community
  • Portfolio Outcomes

What are we building?

Merging my past life as an operator and present life as an investor, I’ve taken a human-centric design approach to architecting our new Founder Outcomes function.

Listening, observing, accompanying, and co-creating. It’s my privilege to make sure our founders feel seen and heard as we build alongside them.

📦 What we have shipped so far.

  • Our 1st Founder Voice:
    • A report comprised of qualitative and quantitative feedback from +70% of our portfolio founders, focusing on their experiences and expectations from our partnership.
  • Founder Outcomes Journey:
    • A v1 journey built to meet our founders where they are and with what they need to be successful as whole humans.
    • Informed by the five functional and emotional “Jobs to be Done,” shared and developed with our founders.
  • Mini Board Meeting (MBMs):
    • The top request from our founders to get the whole 7️⃣7️⃣6️⃣ squad together to deep-dive on strategic and tactical topics.
    • This is a safe place to practice, learn, and grow the skill of presenting to – and leveraging input from – a Board on a quarterly basis.

As with any great system design, it will perpetually be a work-in-progress. We plan to test, launch, and iterate on all of our initiatives. Our work is never done, and we are always at the starting line.

We made a conscious decision to build a team with Community and Experience Design at its core, knowing how critical it is to make this investment early. With this focus, the Founder Outcomes team can operate both at scale and intimately with our founder community, setting each and every one of them up for long-term success in a way that’s unique to them – not designed at a high-level for people like them.

Why me?

As a former founder, operator, and now investor, I bring all three lenses to the table to craft this function a bit differently.

My operational background is in building and operationalizing customer-centric teams in hyper-growth SaaS startups, with a strong focus on retaining and growing customers and teammates through value-driven initiatives.

But, more importantly…

Facilitating growth in people and organizations is my Ikigai – reason for being.

My north star is keeping the triple bottom line in balance: a company’s mission, people, and business outcomes. I do that with a whole lot of empathy, some tough love, and an extra helping of humble pie from my own lived experiences.

Founders, I look forward to building alongside you! And that starts with hearing from more of you, so please do get in touch with ideas, thoughts, and feedback. We are just at the starting line.

The Seven Seven Six 2% Growth & Caregiving Commitment

The Seven Seven Six 2% Growth & Caregiving Commitment

Why caring for our founders makes good business sense

Original Art by Zoe Black

Over the course of my career, I have had the privilege of providing counsel to business leaders on all varieties of plans and decisions. Each relationship was unique and spanned a different period in a company’s lifecycle, covering both times of exciting potential and intensifying challenge. With a background in People & Culture, I gave advice to leaders that was different from what they were used to hearing in times of uncertainty: “This is hard, and you can do this—but you aren’t much help if you have nothing left to give.”

Founders often adopt the “leaders eat last” mentality, but if 2020 has taught us anything, it’s that resilience and a forward-thinking mindset can beat incredible odds. 

No matter what the challenge is, leaders are better equipped to handle it if they invest in personal care and growth. Still, we all too often see founders prioritize their venture dollars to maximize business results. Rarely do we see founders directing dollars to their own wellbeing. Oftentimes, they’re neglecting themselves and their family needs in service of the business. And the way we see it, that mentality puts founders at risk of experiencing a host of issues: burning out, having marital issues, experiencing loneliness, feeling disconnected from friends and loved ones, not processing grief, deprioritizing physical health, and more—all of which present real risks to a company’s success. In short, you can’t make a company thrive if you are barely keeping it together yourself.

We believe in investing in leaders who put their people first, and this needs to start from the founders themselves. It is our responsibility to cultivate that mindset. The Seven Seven Six Growth & Caregiving Program will therefore commit 1% on top of every check the firm writes* to non-dilutive capital earmarked for “founder personal growth” and an additional 1% to “caregiving.” These dollars will sit in a separate pool of funds for exclusive use by our founders for several years after the initial investment.

Since every founder is unique, we have loose guidelines for how this money can be spent. For example, the personal growth funds can be applied toward anything from enrolling in therapy or coaching sessions, buying a new surfboard, or out-of-pocket medical costs. Flexibility and inclusion are at the heart of the program, and we encourage our leaders to make the call on where these resources can have the greatest value.

We’re operating under the assumption that our founders are high-integrity adults who know what they need to grow and develop, both personally and professionally, to achieve maximum mental and physical health. Plus, in our view, people who are lifelong learners and devoted to achieving balance and integration in their lives tend to be more agile, allowing them to adjust quickly to changing environments. These characteristics in a leader can translate into life or death for the business. 

Likewise, the caregiving fund can be applied toward anything that allows our founders to best support the people they love, through both the abundance and devastations of life. Most existing policies and programs are limited in their support of only two major life events—the birth of a child and the death of a loved one. Taking it further, founders rarely apply company handbook policies to their own lives, fearing the business will derail without their watchful eye and constant participation. 

We believe that there is far more complexity to the human experience and, yes, that includes for founders. Accordingly, this part of the program was created with the intent to support leaders throughout the course of the beautiful and heartbreaking moments they may encounter on their journeys, from childcare to plane tickets, to visiting an ill loved one. Whatever the case, these dollars will go toward supporting founders as they seek to find balance and presence in wherever they are most needed. 

Drawing on our own lived experiences through bringing children into the world, losing people we love, and supporting our communities through dynamic personal challenges, we know how compelling a program like this will be.

We believe that it’s our founders’ job to care for their employees and our job to care for our founders. 

Seven Seven Six’s founding team members have worked together closely for the past six years, never straying from our commitment to supporting employees, founders, and our communities with flexible benefits and policy changes. We’ve fought for paid family leave, charted new territory with policies like miscarriage leave and support, and simply done the right thing when we’re sitting across from someone sharing hard news. Now, it only makes sense that we’re the team prioritizing this in our firm from the onset of the very first fund. 

We also believe in open-sourcing goodness. We’ll track, measure, and share the program data to help maximize our impact and encourage others to join in the development. We drew inspiration from the Felicis 1% program and are hopeful more venture capital firms will make similar commitments following our example.

We view this as the first of many opportunities to evolve our industry and build a more compassionate future—one that embraces the human experience to achieve great success. 

*based on first check at pre-seed and seed stage investments