Raj Shah, Managing Partner at Shield Capital, joins Lucas Bagno and Ian Cinnamon on this episode. Takeaways:
- Raj and Shield don’t care whether a founding team has experience selling to government, because the firm can help with that. They evaluate the team, the market and the tech when they’re looking at an investment.
- Ash Carter was the first sitting Secretary of Defense to come to Silicon Valley in decades when he visited to jumpstart new initiatives to encourage startups working with government.
- Raj recommends that startups work with organizations within the government that have a mandate to move quickly.
- If a company decides to work with consultants, ensure that incentives are aligned such that the consultant benefits when the company benefits, rather than the consultant receiving a large payment regardless of the outcome.
- Many more generalist investors have been investing in defense, but it’s a very difficult space to invest in. It takes time for investors to learn the jargon and the players.
- When a company is evaluating and investor, it should ask two primary questions: 1) Does this investor truly understand the customer set? 2) Can this investor be helpful in company building in the boardroom?
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