Investing for the Long Term: Lessons from Morin Capital and Pocket

Investing for the Long Term: Lessons from Morin Capital and Pocket

When it comes to investing, it's not just about the idea itself, but rather the commitment and dedication to that idea for the long term. This is a lesson that Morin Capital's Syndicate understands well. Their goal is not simply to invest in companies, but to build close and personal relationships with their entrepreneurs throughout the entire process. By bringing together not just capital, but also ideas, focus, technology, creativity, design, and philosophy, Morin Capital aims to create lasting companies that have a positive impact.

One company that exemplifies the power of commitment and focus is Pocket. Despite having a small team of just 20 people, Pocket managed to attract 20 million users. This goes against the common belief that a larger team equates to a greater impact. In fact, Pocket's founder, Nate Weiner, couldn't understand why a team of 60 people would be necessary when he first talked to Evernote about a potential acquisition. He believed that with a smaller team, it's much harder to lose focus. When you have fewer people, you can't afford to work on anything that's not critically important. This razor focus allowed Pocket to stay true to its mission and build a strong culture from the very beginning.

Culture is a crucial aspect of any company, and Pocket understood this early on. Weiner recognized that a company's culture is often a reflection of its founder's personality traits. Instead of trying to create a culture from scratch, Pocket embraced the idea of starting with a few key ingredients and letting them simmer together. This approach allowed them to develop a strong culture based on trust, scrappiness, and ownership. By keeping their team small, Pocket was able to maintain these bonds and a common worldview without the complexities of a large hierarchy getting in the way.

But building a successful company isn't just about internal culture. It's also about how a company engages with the world outside its walls. Pocket understands the importance of simplicity and making things easier for everyone involved. They constantly ask themselves, "How can we make it simpler?" By not requiring others to reinvent the wheel, Pocket ensures that their product is accessible and user-friendly. This approach not only attracts more users but also fosters a sense of community and collaboration.

So, what can we learn from Morin Capital's Syndicate and Pocket? Here are three actionable pieces of advice:

1. Commitment and focus are key: When investing or building a company, staying committed to your idea for the long term is crucial. It's easy to get distracted by new opportunities or lose focus when faced with challenges. By maintaining a razor focus on what truly matters, you can navigate through obstacles and achieve lasting success.

2. Culture starts with the founder: As a founder or leader, your personality traits and values will shape the culture of your company. Instead of trying to create a culture from scratch, focus on cultivating a few key ingredients and let them naturally evolve over time. This approach will result in a more authentic and cohesive culture.

3. Simplicity breeds success: Making things simpler for both your team and your users is essential. Avoid reinventing the wheel and instead focus on refining and improving what you already have. By prioritizing simplicity, you can attract more users and foster a sense of community and collaboration.

In conclusion, the stories of Morin Capital's Syndicate and Pocket teach us valuable lessons about investing and building successful companies. By staying committed to our ideas, cultivating a strong culture, and prioritizing simplicity, we can achieve long-term success and make a lasting impact. So, let's embrace these lessons and embark on our own entrepreneurial journeys with confidence and determination.