Volume #36 TL;DR:

As one of my favorite philosophers Charles Taylor described it in his book: we live in an age of authenticity.

Authenticity has become a virtue in our post-modern era. The true search and expression of ourselves.

This manifests itself in people trying to be as authentic as possible online, their use of language, clothing, religion, etc.

And hence, authenticity has become something we all have deemed to be important. Rightfully so.

Since authenticity has become something that is so intrinsic to how our culture is navigating life, I think many of us have stopped reflecting on why and how it is actually useful. Not just that we ought to be authentic, but why.

I believe the best relationship builders and therefore fundraisers in our venture capital industry have strong convictions around being authentic.

They’re not just authentic, because it’s the “better” way of expressing yourself. They are also authentic, because it is the more strategic way to build relationships.

As the legend John Kim said in his great interview: “Money moves at the speed of trust.”

So, how do you build trust? By being authentic.

There is actually a psychological framework that underlies the concept of money moving at the speed of trust. Something I am sure John Kim is aware of.

Plainly said: in any sales process, the “buyer” assesses two aspects of the “seller”:

If the intentions aren’t clear and trusted by the buyer, the seller can be as competent as they want to be, there is a low probably that the needed trust gets established for the transaction.

Hence, people need to trust you first before they can also realize how competent and able you are.

One of the most strategic ways to show your intentions quick and honestly is by being authentic. Then you can get to the sale.

The actual research behind it is based on Susan Fiske's work on social cognition (the Stereotype Content Model). Which found that people judge warmth, or intention, before they judge competence when forming an impression of someone.

This judgment also carries more weight: if someone's intentions read as self-serving or untrustworthy, their competence stops mattering much, because the relationship gets written off before ability is even considered.

There is also a further point worth adding.

If competence is perceived before intention is clear, it can actually work against the seller rather than simply being neutral.

Fiske's research on the Stereotype Content Model found that when someone is seen as highly competent but their warmth or intention is ambiguous or low, they tend to be judged more harshly than someone who is low in both competence and warmth.

This combination often produces suspicion, resentment, or even a sense of threat, because a competent person with unclear motives is seen as more capable of acting against your interests.

Skill without a clear read on intention does not land as impressive, it lands as risky.

This is consistent with everyday intuition about the "smooth talker" or "slick salesperson" effect. High competence on its own can raise a buyer's guard rather than lower it, because it signals capability without yet signaling whose benefit that capability will be used for.

This reinforces why establishing intention early is not just a nice first step, but a way of avoiding a negative outcome, since demonstrating competence too early or too forcefully, before trust in intention is established, can backfire.

Being authentic is like walking into a room with your arms held up high, showing you’re coming without any hidden weapons and good intentions.

And it’s not just a helpful thing to do, it’s a strategic thing to do.

The last couple days serve as a great example of how a master fundraiser is strategically using authenticity to communicate and “own the narrative”.

In the below post it gets mentioned that Travis was “just in town” and wanted to come to discuss Atoms.

Travis is too strategic to be “just in town”. But by not scheduling the conversation, Travis gets the opportunity to eliminate a pre-drafted narrative that the conversation should evolve around according to the hosts. He doesn’t force authenticity upon them, but he definitely increased the odds of an authentic conversation.

Why? Well, you’re always fundraising, stirring the pot, and creating momentum. Travis does this better than almost anybody.

Earlier this year I also spent time with Adan Neumann in a small group setting. He did exactly the same thing. We were supposed to have some Q&A time, but he suggested to ignore any pre-written questions and to just focus on the questions in the room.

It changed what happened in the room. It showed his intent of caring for the value of the conversation in the here and now. Also Adam is better at fundraising than almost anybody else.

Both Travis and Adam are masters of harnessing authenticity. It’s more than just a personality trait. It’s something that they have learned the immense value of and something they intentionally seek out.

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