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Entrepreneurship: Navigating Investor Feedback for New Founders

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As a startup founder, pitching to investors is a crucial part of your journey. But what happens after the pitch? How do you interpret the feedback you receive? In this post, we’ll explore the art of decoding investor feedback and what it really means for your startup.

Understanding the Feedback Landscape

Two Important Points:

  1. Investors Don’t Owe You Clear Feedback: While some may provide detailed critiques, it’s not their job to do so. Appreciate those who take the time to offer substantive insights.
  2. You Are Not Objective: As a founder, it’s natural to have emotional reactions to feedback, especially when it’s not positive. Remember, you’re fundraising, not feedback-raising.

The Five Types of Investor Feedback

1. “You’re Too Early”

This is often a polite way of saying no. If it’s the only feedback you receive, it might be time to move on. However, if you’re consistently hearing this, it could mean investors aren’t impressed with what you’ve achieved so far. The key is to demonstrate something special that points to a bright future.

How to Respond:

  • Show Progress: Highlight any significant milestones or traction.
  • Share Your Vision: Paint a clear picture of your future roadmap.
  • Seek Early-Stage Investors: Focus on those who specialize in early-stage startups.

2. “Your Market is Too Small”

When investors say your Total Addressable Market (TAM) is too small, they’re expressing doubt about your potential to become a unicorn. If they don’t ask detailed questions about your market, it might be time to move on. However, if they do, take notes and be prepared to defend your market analysis.

How to Respond:

  • Expand Your Market Definition: Identify additional segments or applications for your product.
  • Provide Detailed Analysis: Use data to back up your market size estimates.
  • Highlight Market Growth: Show trends indicating that your market is expanding.

3. “You Don’t Have a Moat”

A true moat isn’t just about patents or features. It’s about having a strong, contrarian opinion at the core of your startup. Think about Airbnb – their initial moat was that most people thought their idea would never work.

How to Respond:

  • Clarify Your Unique Value Proposition: Explain what sets you apart from competitors.
  • Showcase Defensibility: Highlight aspects like network effects, proprietary technology, or exclusive partnerships.
  • Articulate Your Vision: Emphasize your long-term strategy and how it protects your market position.

4. “You Can’t Make Money”

If you’re getting pushback on your business model, it might indicate that your financial storytelling needs work. A clear, convincing story about how you’ll grow is crucial, even if the exact details are uncertain.

How to Respond:

  • Refine Your Revenue Model: Clearly outline how you plan to generate revenue.
  • Provide Financial Projections: Use realistic scenarios to project future earnings.
  • Highlight Monetization Strategies: Showcase diverse revenue streams or potential for high-margin products/services.

5. “We Don’t Believe in the Team”

This feedback is rarely given directly. If an investor loves your space and traction but still passes, it might be an unspoken concern about your team. Make sure you’re not underselling your team throughout your pitch.

How to Respond:

  • Emphasize Team Strengths: Highlight each member’s expertise and relevant experience.
  • Share Success Stories: Mention past achievements and how they contribute to your current venture.
  • Show Complementary Skills: Demonstrate how your team’s diverse skills make you stronger collectively.

How to Respond to Feedback

  • Don’t Obsess Over Converting Every “No” to a “Yes”: There are diminishing returns in trying to change an investor’s mind.
  • Ensure You’re Pitching the Right Investors: Targeting the wrong stage or type of investor can lead to irrelevant feedback.
  • Look for Patterns in the Feedback You Receive: If multiple investors raise the same concern, it might be worth addressing.
  • Use Feedback to Improve Your Pitch and Business: Don’t let it derail your vision, but use it constructively.
  • Remember That Investors Are Trying to Decode You Too: They’re looking for signals about how you’ll handle challenges and changes.

Conclusion

Decoding investor feedback is as much an art as it is a science. While it can be frustrating and sometimes confusing, remember that each interaction is an opportunity to learn and improve. Stay focused on your vision, be open to constructive criticism, and keep refining your pitch. With persistence and the right approach, you’ll find the investors who truly believe in your startup’s potential.

Additional Tips for Decoding Feedback:

  • Network with Other Founders: Sharing experiences with peers can provide new insights and strategies for interpreting feedback.
  • Stay Updated on Industry Trends: Understanding current trends can help you address market-related feedback more effectively.
  • Regularly Review and Revise Your Pitch: Continuous improvement is key to addressing feedback and presenting a stronger case to investors.

By following these guidelines and maintaining a resilient mindset, you’ll be better equipped to navigate the complexities of investor feedback and make informed decisions for the future of your startup.

Embracing Meekness and Servitude: The Role of Humility in Christian Faith and Spiritual Growth

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Humility is the prime virtue to battle against the only sin. Fighting pride is part of our purpose in life, but it’s not clear we can ever be completely free from pride in this life. It’s an aspiration that we continue to strive for every day. We have to commit ourselves daily to align ourselves with the light of the Lord. Humility puts us back into the right relationship with God.

We cannot have a relationship with God with pride in the way. It disables us and blocks our relationship with God. Through humility, we can be our true selves as it gives a clearer mirror to shine God’s glory. Pride casts us down and distorts us into the masses of sin, and it taints us into little devils.

Every step we take must be towards becoming little gods like Christ. It’s the Christian aim. We have to push forward to incrementally lay down our pride, always striving to grow nearer and learn more from Christ’s example. It’s a sin and human nature to think that we can have power and claim our own self-sufficiency. Complete dependency and commitment is the only path, and it is paradoxically the most difficult and easy thing to do.

We might have fantasies about being the center of attention or being the main character. It’s easy to seek this immature form of pride that is tied to insecurity, vanity, and want of validation. It’s a special trap for me—maybe it’s the way I grew up, maybe it’s the things I was influenced by. In any case, I need to step back and realize I’m not the main character. This part of humility can be tough because our culture is so tied with the idea that being special means we’re above somebody else. We are special because we don’t deserve to be yet saved by grace. God picked us to be special but it gives us no special status above anybody else. We need to take this to heart and be gracious in all that we do. We must humbly serve in the background.

Look at our pets. They are meek and loyal, but to us, they are more special than any other. We can learn from them to not compare but just act in servitude.  I have a dog that teaches me so many lessons of living life with vitality, humility, loyalty, courage, and commitment. We must direct all focus to others and outward attention instead of trying to ruminate on ourselves and our relation to the world. If we need to think about ourselves, we should think about our relation to God. Meekness can be incidental and a label to describe someone in a certain situation. The primary focus can be the fruit of the spirit. Who are we? We are nobody. We are sinners. But through mercy and by God, we can be saved. This is why we should be meek.

We have reminders all the time of humility that make our lives harder. Shame, inadequacy, and feelings of insecurity remind us to reflect on our haughtiness, pride, and narcissism. We must pray that our hearts can be enlightened. God has called us but our pride blocks our ears. The journey to cleanse ourselves is difficult, but, once we take it, we realize the work is all being done by God. We are just handing the tools to the master; the weight of the tools is insignificant compared to the work, but even the tools feel heavy to a novice. To want to be with God is to be humble; to be humbled is to be loved.

Balancing Work, Meaning, and Faith in Modern Life

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It’s easy to get myopically caught up in a demanding job. We mistake business for meaning. Or we distract ourselves with business to avoid the question of meaning. But a meaningful life is our responsibility, and it will always be our responsibility despite any distractions. This is a great lesson from the existential philosophers for our modern world.

But we cannot be defined by our profession or our status because it is all too insignificant. This perspective on the significance of work becomes clear on our deathbeds. Sacrificing so much for our work or perception is a dangerous trap. There has to be something more. A greater meaning. Mere approval from others might be attractive and give us a temporary buzz, but when we’re alone and left with our thoughts, we know that there must be something more.

Of course, Christ is the answer I am alluding to. The priority must be kept in mind. Christ wants us to work, but we must always work in virtue of Christ, and only for Christ’s glory and not our glory. The meaning is centrally Christ and our work is just the steps we take with him. I often fall into the trap of engrossing myself in work. But a singular type of work. The work that gives me status, approval, and comfort. We have to be careful of the idol of work. In modern life, we can worship business, productivity, and achievement. For this to take the place of Christ is absurd. It can be important to branch out into other kinds of work or leisure as an act of faith.

It’s a blessing to be able to create or engage in creative work. Creative work can be understood as something broader than something artistic or using our hands, such as creating a community, creating a small process of efficiency, or creating a better world for somebody. We must use this opportunity to work hard and create work to the best of our ability. In the same way, Mozart must develop his talent, we have a duty to do our best and hone our craft. If we can, we can have a little piece of creating beauty that reflects divine glory. In this vein, we have to use every second of our time on earth to work. Doing less than what we’re capable of or being lazy and slothful is a sin. We must cut out all the fluff of the opiate of media, easy pleasure, and anything taking away from true happiness. We can get distracted by easy pleasures that pale in comparison to the true joy of genuine happiness. In the same way, classical music requires a finer and finer ear to enjoy; even more, the rapture that a performer feels at their finest performance.

It’s important to be alert and sober. It’s not always about substance abuse but anything that can intoxicate us. Our minds can be intoxicated by people, technology, or any other distractions. We need to peel these distractions off of us in order to access the correct view of life. The mission we have in our life is our mission for God. We have to stay lucid and embrace the discomfort. It’s a part of life. To try and escape life as soon as it becomes uncomfortable misses out on something. It takes out the pensive confrontation of the thoughts we avoid and the things that rise out of boredom. We must process things in sobriety. Another aspect of sobriety is purity. We need to get rid of all distractions like taking off dirty clothes. We need to purify our minds and what we consume with our attention in order to be completely sober. This isn’t some sterile life that’s in store for us. It’s about maintaining control and knowing our boundaries. It’s about having the clearest mind in order to have fun.

In developing more mature skills, we become more efficient and economical. We need less effort and it becomes more refined in delivering happiness. The mature happiness that goes beyond novelty. At higher levels of skill, there are new planes of enjoyment that only a few, those who have achieved equivalent mastery, have properly attained and experienced.

Christian Forgiveness in Daily Life

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Forgiveness is the ultimate mercy we are shown by God. His grace is undeserved and an act of pure mercy. It is ineffable, completely incomprehensible why he would come to us; the only answer we are given is love. We have to remind ourselves of the significance of this every day. It’s easy to forget about it because it’s so incomprehensible. The magnitude is hard to grasp. Still, a part of our daily meditation is to tap into the immense gravity of the meaning of forgiveness.

We all go through hardships of different degrees and taken with different temperaments. It’s easy to forgive ourselves for acting out from hardships, but we can’t seem to access that sort of empathy for others. We assume the worst by assuming everybody has easy circumstances and that we are the only ones suffering. It’s through empathy we can forgive.

In our own forgiveness, we must forgive others and ourselves. Forgiving others may come easy to some, but it is a monumental challenge to those who have been dealt lasting harm from others. It’s an act of obedience to forgive others. We have to look to God to understand others and to show the same overflowing love to others. In forgiving ourselves, we must not be flippant and let ourselves off the hook too easily. Repentance cannot be taken for granted. We may sin the same sin again, but we should know that it becomes increasingly painful and we cannot make forgiveness a transactional blank cheque.

A part of being generous and giving is being forgiving and bending for people. Obviously, there are boundaries and lines drawn by principle that we should not cross. But there is room for discretion, especially when it’s for the benefit of others instead of ourselves. We can often fool ourselves into thinking that we’re being selfless when it’s actually for our own pride. The example by C.S. Lewis is an overbearing woman who insists on having a tiny piece of toast and perfect temperature tea in an attempt to show modesty or the like; in actuality, it’s their own need for control and wanting things just their way that’s at play.

God shows leniency towards us. He could punish us or turn his back on us, but he always shows love and care. We have to use that example. Underlying lenience should be trust in God. There’s a time for everything. One way to understand Genesis and the forbidden fruit is to trust God in our growth. We can’t attempt to have things our way or control the timing of things; in this sense, we should not prematurely taste the fruits. We have to be patient and trusting of God and know that one day we’ll grow enough for God to serve us the fruits when it is allowed. The permission for our own good. It’s not an arbitrary rule; rather, it is like restricting the big boy’s bicycle until the child masters the training wheels. 

We have love as our breastplate and hope of salvation as a helmet. Through this, we can be lenient towards others and understand the relative insignificance of our tribulations. We can forgive others and glean over slights. Lenience can be understood as essentially interpersonal, but we should also be lenient towards ourselves insofar as not worrying about our own abilities and instead leaning on God.

Unconditional Commitment: Embracing Kierkegaard’s Philosophy for Christianity

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“Unconditional commitment” is the term Hubert Dreyfus used in explaining a core concept in Søren Kierkegaard’s philosophy. It is a risky leap of faith that overcomes nihilism and gives meaning to our lives and our every action. All other commitments are flimsy and can fail, so we need some ultimate commitment to prop up our lives and use as a lens to see our lives through. The example Dreyfus uses is Martin Luther King and his civil rights movement—King wakes up every day knowing all his actions are directed towards his cause, and this is what gives his life meaning. Every moment was around social justice and civil rights, and all of his choices or value in life is guided by this single source of purpose. For Dreyfus, his unconditional commitment is teaching, which engrosses him entirely and he puts everything into it. And it truly made Dreyfus one of the greatest teachers and made his 87 years on this earth truly meaningful. However, the opportunity costs, the incomplete knowledge of the decision, and the complete devotion are some of what make an unconditional commitment an inherently risky decision to take.

What is the application to the Christian life? It’s straightforward and what Kierkegaard originally intended, that is, Christianity is the proper unconditional commitment. We have to see our entire life through the lens of Christianity: every action, decision, and plan. Deviating from this leads to inauthenticity, existential anxiety, and a failure to be ourselves. To stick to a commitment is a truism. For a commitment to be unconditional means that it is ultimate. To become and be a Christian is to live a life based on an unconditional commitment to Christ.

Eternal priorities are the ultimate priority. It gives everything else meaning. They are the priorities that prioritize everything else in life. Eternal priorities are related to the purpose Christians are put on earth for: spiritual growth, serving others, and, above all, serving God. As we take every step, make every action, choose every decision, we must always remember our ultimate priorities. The priorities that transcend time. Past and future are insignificant in comparison, and, in the present, we must reflect and reorganize our priorities to match the eternal priorities.

Every morning we must take on our new life. We have to enter the perspective of eternity to know our true selves. How we forget so easily is beyond me. Perhaps our animalistic side is somehow primary and we have to deliberately enter into more sober thinking. Even beyond the human, we have to try our best to reconnect with the Lord and ask for forgiveness of our sins. We can be grateful for everything by virtue of the light the Lord provides. Nothing can shake this core of faith.

Why are these priorities of infinite importance yet so easily forgettable? Is it because we believe it’s a part of our private lives and it crumbles as soon as the public knocks on the door? If so, we must integrate our beliefs into all areas of our life. We have to remind ourselves every day we wake up. If we look through the lens of eternity properly, we can enjoy our lives and appreciate the insignificance of our day-to-day to enjoy it. Like a stroll through the garden, even war and plague are nothing in the eternal perspective.

We are not meant for this world. But we are not prepared for the eternal either. We struggle awkwardly to have a glimpse at the eternal. The gap between eternal priorities and what we have here on earth is so vast that it seems impossible to apply. How do we apply eternal priorities to everyday practical priorities? Aren’t they insignificant compared to the eternal? In a sense, yes. But our day-to-day can contribute minutely to the eternal and have lasting compound effects.

We should remember the new covenant in contrast with the old. We have been saved eternally and made anew to obey the command of God in each situation rather than through legalistic laws. The knowledge of God is readily accessible to us through the Holy Spirit insofar as spiritual purity and morality, but we also have intellectual confidence that the experience of the Holy Spirit is more real than anything here on earth.

Freedom is often the central topic for existentialist thinkers. Radical freedom is a trait specific to humans and the experience of being a human. Freedom leads to uncertainty, anxiety, and all sorts of life’s complexities. We may choose to ignore our radical freedom, but this too has consequences. Ignoring our freedom is also a choice. Perhaps not as deliberate, but this can be all the more toxic. Kierkegaard diagnoses this neglect of our own freedom as the chief source of existential anxiety. It is interesting that secular thinkers also neglect freedom as the ultimate sin.

For the Christian, the freedom we have is a gift from God. Perhaps it is our ultimate gift. We have to nurture it and exercise our freedom wisely. We must use it to grow and make choices that align with God. This is our true purpose and the reason why we are on this earth at all; truly, all of our choices need to be deliberate and informed by our commitment to Christ. Through prayer and meditation, we can slow down and be more aware of our choices. We cannot let the world distract us and usurp this power of choice. We cannot use our freedom for ourselves and dig our empty cisterns. We need the spring of living water and set God at our core. An unconditional commitment to God is the only way to be truly free.

By taking on a conditional commitment, one becomes what Kierkegaard calls, “a knight of infinite resignation.” The knight of infinite resignation deliberately makes the choice to resign everything in life to focus on one source of value. Infinite resignation is a movement whereby one gives up what is most precious to them, and, in relinquishing the finite, gaining an “eternal consciousness” so that only love for God remains. The idea is to resign ourselves to God. With pure faith, we can go beyond the ethical realm and the norms of our community or self-authorized morality. We are weak thinkers; we need God’s infinite wisdom for our partial wisdom to be perfected in us. We must take every step with reference to Christ. We must give up everything—approval of others, value from others, or any animalistic, selfish desire—and instead, we must make reference to the only purpose.

We recommit ourselves every day, moment, and second. We can forget momentarily but all of our meaning must return to God. All decisions, every step, and every thought. All we can do is have faith in his grace. Life becomes simple. The busyness of life and the many distractions become noise. The correct perspective aligns all your decisions to a singular point, and all else is resigned. In other words, we give our all to the lord; we lift it all up to him and faithfully resign our will to his.

“That is why the real problem of the Christian life comes where people do not usually look for it. It comes the very moment you wake up each morning. All your wishes and hopes for the day rush at you like wild animals. And the first job each morning consists simply in shoving them all back; in listening to that other voice, taking that other point of view, letting that other larger, stronger, quieter life come flowing in. And so on, all day. Standing back from all your natural fussings and frettings; coming in out of the wind.“

  • C.S. Lewis (Mere Christianity)

The Christian Perspective on Honor: Rediscovering the Lost Virtue for Modern Faith

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Honor is a lost virtue. Honor, defined loosely as living up to the expectations of a group through keeping faith, promises, and truthfulness, is traditionally linked to free, adult males and is difficult to justify against universalist ethical theories. Honor has historically been central to political and commercial life, especially in a social context where individuals can bind themselves.

Modern philosophers often view honor as superficial compared to consequentialist and deontological ethics, yet some, like Aristotle, considered it the pinnacle of virtue. Honor’s commitments are socially contextual and non-contractual, relying on individual capacity and varying by society. It is seen as a measure of one’s ability to fulfill promises and display power. The concept faces challenges, such as its association with status and reputation, its misattribution to groups, and its alignment with the moral standards of its social context. While adaptable to enlightened concerns, honor’s non-universal nature may conflict with modern ethical intuitions like international human rights.

Despite its perceived primitiveness and association with questionable principles, like lawless gangs or vigilantism, honor remains significant in various forms. Honor cultures were much more common in the past, and it has grown to mean many things. Some relate it to valor, chivalry, and honesty; others connect it to a quality of worthiness and respect in relation to social standing. Socially, it has been connected to a code or a code of honor, or a kind of social norm that is understood and respected, and obeyed. It can cut to the core of what defines the elevated status of humanity: the dignity and respect owed to humans in virtue of being human. Of course, this dignity must be upheld and deserving through one’s actions.

The honor however does not come from our own pride, historical legacy, or honor of our tribe. The honor of the tribe is closer. We must remove ourselves completely from the equation. We must be honorable because we are a representative of Christ. Our honor is also not motivated by domination and superiority; rather, it is motivated by love and aligning ourselves with God. If anything, we seek to attain superiority over sin, but not over sinful people—this is an important distinction.

Through the Christian lens, honor is a duty. We must honor God, honor strangers, honor our intimates, and honor ourselves. We must align ourselves with the code of conduct worthy of Christians. Obedience to commands, while it is a small part of our relationship with Christ, is crucial and must not be taken lightly. Obedience and honor flows naturally from a loving relationship, but sin corrupts and we must always be conscience of honor to algin ourselves properly with God again.

Honor is closely related to holiness. We have to maintain holiness and strive to go beyond our sinful nature. The principles we follow from our relationship with Christ must be as important to us as the chase for glory is important for the warrior. We must enthusiastically uphold righteousness and high standards of Christ.

The lost virtue of honor must be on the minds of contemporary Christians. Drawing hard lines and doing things out of obedience is forgotten in this age of liberalism and self-reliance. To think that we are the arbiters of the code of conduct and that we can prioritize our desires over being honorable is hubris. We must humble ourselves. We must act honorably. 

Lost Virtue of Reverence: Rediscovering Humility and Sublime

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Reverence is an appropriate feeling of deep respect, awe, or veneration. Reverence for God can elicit “fear” (Proverbs 1:7), and worshiping God should be with “reverence and awe” (Hebrews 12:28-29). Albert Schweitzer notes a “reverence for life.” He contends that ethics and political life have largely lost the core tenet shared with nature, namely, that we all live and want to go on living. Paul Woodruff explores the ancient virtue of reverence in his 2001 book. He holds that reverence is a cardinal virtue, defined as a “well-developed capacity to have the feelings of awe, respect, and shame when these are the right feelings to have.” Modern life has lost a lot of the reverence for family time, sharing a meal together, reverence for our democratic duties as citizens to vote, or reverence for authority figures. We kept other ceremonies like a memorial for a dead friend or standing for the national anthem. Reverence, Woodruff explains, has the feature that “it cannot be changed or controlled by human means, is not fully understood by human experts, was not created by human beings, and is transcendent.”

The phenomenology of reverence, or what religious reverence feels like, is something I can describe only from my own introspection. To me, reverence is an active relational feeling instead of something passively bestowed upon me. It is deeply engaging and bleeds into ideas of worship.

It taps into the indescribable relation we have to God; as some describe as the I-thou relation. The finite and infinite. The categorical difference. We cannot comprehend it, but it is so familiar to us because we are created for it. We avoid it and find distraction because it is an overwhelming feeling. Once we appreciate it, everything in our lives—all the distractions, feeble goals, and passing value—instantly becomes insignificant. It puts our minds to the limits of ourselves and the possibility of what’s beyond. The spiritual. It goes beyond fear. It is the trembling that comes with facing something so much larger than ourselves that we feel like nothing. Our life can be extinguished, and it would pale in comparison to the ultimate greatness.

From reverence comes sober humility. Perfect humility doesn’t need modesty because it doesn’t even think about oneself needing to be modest. The closer we get to humility, the more we forget ourselves and think of others. Never will we think of ourselves more highly than others, but with faith, we can act in wise judgment. We can align ourselves with the wisdom of God and see the world more clearly. We can come closer with reverence and fear of the Lord to the truth. The truth of the world is knowing the truth of Christ and unveiling what the world really is.

The phenomenology is close to what Immanuel Kant characterizes as the sublime towards certain aesthetic experiences. Experiences of the sublime can be triggered by the vastness of space, a great thunderstorm, or a vast mountain. A great unknown, something larger than us, or something greater in comparison to us. Kant experienced the stars in the sky filled him with awe, and the heavens declare the glory of God. It’s an aesthetic quality commonly associated with nature. It is our taste of the vastness and eternity of heaven. The most magnified thing in our world is our experience of nature. There is no comparison to the firsthand experience. Everything is God’s creation. Seeing God’s touch in nature is a unique beauty. It brings out our soul to call for the Lord and want something beyond this life. For this reason, we should experience this feeling and nature quite often. Solitude with nature and God.

Others have observed the sublime in the context of music. It sparks an emotion of ascendancy and transcendence. I still don’t quite understand it. I’m not skilled enough. It takes a lot of skill and work to appreciate the finer nuances and develop the appreciation for some types of beauty. It takes work and time. Perhaps this is the power of religious music. Aesthetic pleasure in the arts only emulates this. Every art and science can be beautiful in the right light.

Modern culture has downplayed the sacred, and the sacred is tied to reverence. In the Christian life, our acts of worship and devotion can dangerously become complacent routines rather than acts of reverence. We must tap into the experience of the sublime with God as a renewal of faith and reflect on what Christ has done with reverence.

How to tell a good joke

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Intro

You think of a joke. You muster up the courage to say it. You delivered the punchline—you expect everybody to laugh—instead, there’s silence. It’s a terrifying, gut-wrenching feeling.

Let’s see why some jokes fail and what makes something unfunny.

Poor delivery

Delivery is half the battle and a large part of what separates professional comedians from everyone else: you have to commit to your joke. It’s not easy to get over the nerves and tell jokes confidently with the self-conscious gaze of an audience. The illusion of performance is establishing a particular character or persona, and fully committing to that role. Breaking character disrupts the illusion, and this can happen from being hesitant or stumbling over one’s words. There is a flow and rhythm to every performance, and this is crucial to the delivery of a punchline.

The professional comedian’s delivery is one of the skills that are honed, and mainly through repetition and exposure. Often, this is achieved by brute force and spending lots of time on stage to make the contrived environment of being in front of a stage feel natural. The purpose is to overcome the barriers of nervousness and build confidence in telling a joke. Another effect of this is slowly developing a comedic voice, or a persona, or an ethos, or a character from which the joke is delivered. This can be deadpan, over-the-top, blue-collar, or any exaggerated way of conveying a joke.

Remember, the delivery of a joke can be awkward and still work, as long as it’s consistent with the personality of the comedian. This is where authenticity comes in. The audience is well aware if you’re being disingenuous or nervous, like a key that is flat or playing the wrong note. It disrupts the entire flow and momentum of the relationship between the comedian and the audience. 

Poor joke structure

With good delivery, goodwill can get you some polite laughs even if the joke is not that great. But not for truly terrible jokes or hacky material. You’ll get some groans or the failure may ruin your ethos or trust that you built with the audience.

A joke must build up a certain tension—sometimes called a set-up—and there must be a payoff—the punchline. There are a number of theories about the structure of what exactly makes a joke funny. But jokes aren’t made in isolation.

Jokes are tested in front of audiences. Like a focus group, you want to test your joke in front of as many different audience demographics as possible to ensure that it works. A joke that is universally funny is rare. As such, creating and testing a joke is a long iterative process. Practice makes perfect. Comedians tell the same joke every night, and you might notice that social butterflies recycle the same funny story with slight modifications. They might change a part that doesn’t work, cut out some of the wording, or add in a tagline to make it funnier.

Poor audience  

The majority of the time, it’s not the audiences’ fault if a joke fails because it’s poorly structured or badly delivered. But sometimes you have genuinely bad or hostile audiences.  

For everyday scenarios, we have to look for opportunities to fit a joke in. Unlike professional comedians who create a world on a stage, in a comedy club, in front of lights and a seated audience, our day-to-day world is often not conducive to comedic bits. Jokes can fail because it does not fit the environment.

It’s an important skill to read the room. Comedians can quickly assess which kinds of jokes work for the audience by listening to the receptiveness of the jokes. What is the emotion of the audience? For example, you probably shouldn’t tell vulgar jokes at a work meeting.

Conclusion

People spend their entire lives mastering comedy. The feeling of bombing before a crowd, the awkward silence after cracking a joke, or eliciting no or the wrong reaction from someone can be one of the worst feelings in the world. But there’s something noble about it. You took a risk and you failed. You made the attempt. You will get better.

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M&A Workshop: Sample Term Sheet Client Letter

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Dear Acquireco,

We have detailed in this letter our reasoning for the various key provisions in the Term Sheet.

1. DEAL CERTAINTY

a.      Non-Solicitation

Foremost of the deal protections are the non-solicitation provisions that will significantly limit any potential competing bid. These provisions restrict any discussions or proposals that may lead to an Acquisition Proposal (which we have defined broadly), including those companies that participated in the auction.

We have also taken steps to narrow the fiduciary-out provision. While the Board may decide to recommend and pursue negotiations regarding a different Acquisition Proposal, it must first fall under the circumscribed definition of “Superior Proposal”. Should a Superior Proposal occur, we have included a matching period in which Acquireco has the right to review and match the offer. 

Targetco mey feel strongly that they need to canvass the market to satisfy the Board’s fidcuiary duties. Our goal will be to keep their ability to do so as restricted as possible without limiting it to such an extent that the deal could be challenged. Our position will be that a canvass is unnecessary given that a failed auction took place one year ago; however, Targetco may argue that a recanvassing may be required given the developments in the online streaming business.

If Targetco persists on this point, we are prepared to negotiate a strict go-shop provision, which will allow Targetco to solicit other Superior Proposals. While this may seem counterintuitive as a deal protection, we believe that such a provision would be favourable for Acquireco.

If a go-shop provision is negotiated, we would insist on the following conditions:

1)      There shall not have occurred any market canvass since the previous auction and the date of the Agreement. If such canvassing has taken place, then there should be no reason to concede on a go-shop.

2)      The Board shall not solicit any company other than those companies that the Board believes to be interested only in the online streaming business. The Board’s fiduciary duty is only necessary to canvass companies who would be interested in the part of the business that has changed since the last auction. This will also provide Acquireco the opportunity to negotiate a joint venture to divvy up the theatre and online streaming businesses.

3)      The solicitation period shall close not later than 25 business days following the date of the Agreement. Following the solicitation period, the non-solicitation provisions would begin to apply.

The key benefit with the go-shop is that Targetco is permitted to satisfy its fiduciary duties to canvass the market under restricted terms that are more favourable to Acquireco than a pre-agreement market canvass.

b.      Contractual Restraints

First, we included provisions that will enhance the speed at which the deal is completed. We have provided that Targetco must obtain an interim order and circulate the Targetco Circular as soon as practicable. We want to ensure the timely completion of the deal to reduce the risk of any intervening events between now and closing.

Second, the Board is required to unanimously recommend the Arrangement. Further, the Board will be required to reaffirm their recommendation if an Acquisition Proposal is not a Superior Proposal. These provisions will help deter other bidders and garner support among Targetco Shareholders.

Third, the Board is prohibited from waiving any confidentiality or standstill agreements that currently exist and must enforce them. This will help prevent any interested parties who participated in the auction from submitting a competing bid.

Fourth, we have drafted a force-the-vote provision that requires the Board to submit the Arrangement for a shareholder vote for approval notwithstanding any Superior Proposal. Targetco will be concerned about fulfilling their fiduciary duties with the combination of a force-the-vote and hard lock-up agreements (41% in the aggregate). We argue that the lock-ups do not completely guarantee the success of the transaction, particularly if the Board is given a fiduciary out to recommend a Superior Proposal.

c.       Lock-up Agreements

We have included, and will insist on, a condition precedent that each of the three significant shareholders enter hard lock-up agreements.

d.      Break Fees

The termination fee is currently valued at 5% of equity value as an anchoring point for negotiations. Courts are likely to rule against anything higher than 5% since it could have auction ending potential.We will negotiate for the higher end of normal market practice for a deal this size to limit competing proposals.

The break fee will likely be negotiated in conjunction with a possible asset option to purchase Targetco’s online streaming business at a premium. While we understand that Acquireco is primarily interested in the theatre business, including an asset option is likely to drive competing bidder interest and enhance deal certainty.  

2. REGULATORY APPROVAL

Both parties in negotiations will be sensitive to the fact that Acquireco is controlled by a Russian sovereign wealth fund. To mitigate risk, we have specified that Acquireco only needs to do what is commercially reasonable to seek regulatory approvals. Acquireco will not be required to fundamentally damage the business to obtain approval.

3. CONSIDERATION

We have drafted a consideration provision that allows shareholders to elect either shares or cash (or a combination) as consideration, provided that the issuable Acquireco shares are no more than 25% to avoid the requirement for Acquireco shareholder approval. However, a substantial portion of the roughly $12 billion deal will have to be financed with cash. If Acquireco shares fall before closing, the cash option will be enticing to shareholders. As such, we included a condition precedent on financing.

We are proposing a fixed ratio pricing formula for the shares offering, though Targetco will likely insist on a floating ratio. If this is the case, we will negotiate a collar to mitigate the risk of Acquireco shares falling in value between now and closing. 

The option to select their consideration gives Acquireco and Major Shareholder the opportunity to negotiate the lock-up agreement. Major Shareholder, wanting to avoid capital gains taxation, will prefer to receive no more cash equal to its adjusted cost base, whereas Acquireco prefers to cash-out Major Shareholder. Both parties may predetermine in their lock-up agreement what apportionment is most optimal to address both concerns. 

4. RISK OF COVID-19

We have drafted Material Adverse Effect (MAE) and Conduct of Business provisions to limit the risk of COVID-19. We will ensure that the COVID-19 carveout in the MAE does not apply if an outbreak disproportionately impacts Targetco. 

Further, the Conduct of Business provisions only allow Targetco to conduct its business in the ordinary course. “Ordinary course” will include measures taken by Targetco to preserve its business through previous downturns. To mitigate this for Acquireco, we have also required Targetco to maintain and preserve Targetco’s existing business and is further prohibited from disposing of its assets. 

5. LIMITING COST IF ACQUIRECO HAS A CHANGE OF HEART

We have drafted an asymmetrical Indemnification provision to further ensure deal certainty by giving only Acquireco the ability to seek specific performance to force Targetco to close the deal. We have also added wording to limit liability in case Acquireco does have a change of heart.

We will be in touch regarding the progress of the negotiations.