Episode 123 – The Growth Rocketship: Hercules Backs Tech, Life Sciences

So two things I want to focus on there, Scott.

First of all, amazing journey.

Again, I won't digress because I feel like unlike many companies, I've had a front row seat to the Hercules story and being part of it since working with you guys since 2011 or so.

And obviously seeing you guys in the market before that.

But two things on what you just said that I really want to double click on.

First one is the failures.

I keep on telling the teams, and obviously, as you know, we're in Boston right now, but I live and work in San Francisco and New York, and so do you.

Hercules is obviously national and international.

Failure is a key part of a lot of the companies and the stories that we're involved with every day, and the fact that it's part of your story as well.

If you had...

To say, when you look at investments, or when you talk to your team, what do you tell them broadly about failure? What should they be focused on so the fear of failure doesn't become a fence that blocks them from making the right decision?

Yeah, look, in our business where we are lending to cash flow negative growth stage companies, you are going to deal with failures.

I think that's part of our ecosystem.

It's part of the business.

And you have to understand that.

I encourage my team not to let the fear of failure drive decision making.

Right.

You have to have experienced failure to be successful as an investor.

If you're an investor that hasn't been through a cycle, who hasn't had companies fail, you're missing a big part of what it takes, I think, to be a well-rounded investor.

So I tell my team all the time, we're going to make mistakes.

The key for me is, are we learning from those mistakes? And are we not doubling down on mistake after mistake? And I think as long as you do that, the results will take care of themselves.

I'm going to triple click on that one.

What fear among your team or in the broader investment market for growth companies is the biggest concern for you now that you know is there, but you don't want to trip on?

Yeah, look, I think the biggest concern, and it's a concern, but it's also a huge opportunity, is the pace of change.

If we look back at the innovation economy, if we look back at what technology has done over the last 20 or 30 years, there's always innovation, there's always change.

So two things I want to focus on there, Scott.

First of all, amazing journey.

Again, I won't digress because I feel like unlike many companies, I've had a front row seat to the Hercules story and being part of it since working with you guys since 2011 or so.

And obviously seeing you guys in the market before that.

But two things on what you just said that I really want to double click on.

First one is the failures.

I keep on telling the teams, and obviously, as you know, we're in Boston right now, but I live and work in San Francisco and New York, and so do you.

Hercules is obviously national and international.

Failure is a key part of a lot of the companies and the stories that we're involved with every day, and the fact that it's part of your story as well.

If you had...

To say, when you look at investments, or when you talk to your team, what do you tell them broadly about failure? What should they be focused on so the fear of failure doesn't become a fence that blocks them from making the right decision?

Yeah, look, in our business where we are lending to cash flow negative growth stage companies, you are going to deal with failures.

I think that's part of our ecosystem.

It's part of the business.

And you have to understand that.

I encourage my team not to let the fear of failure drive decision making.

Right.

You have to have experienced failure to be successful as an investor.

If you're an investor that hasn't been through a cycle, who hasn't had companies fail, you're missing a big part of what it takes, I think, to be a well-rounded investor.

So I tell my team all the time, we're going to make mistakes.

The key for me is, are we learning from those mistakes? And are we not doubling down on mistake after mistake? And I think as long as you do that, the results will take care of themselves.

I'm going to triple click on that one.

What fear among your team or in the broader investment market for growth companies is the biggest concern for you now that you know is there, but you don't want to trip on?

Yeah, look, I think the biggest concern, and it's a concern, but it's also a huge opportunity, is the pace of change.

If we look back at the innovation economy, if we look back at what technology has done over the last 20 or 30 years, there's always innovation, there's always change.