The Essentials
- In this last decade, I’ve worked with hundreds of startups. I often reference Star Trek to help lighten constructive criticism.
- Looking at Star Trek’s characters though the lens of John Doerr’s “missionaries and mercenaries” offers some insight about balance.
- While I love Doerr’s construct, I’d rather not invest in any entrepreneur that is purely missionary or purely mercenary.
Jeffrey Thomas is the Executive Director at Lever and MFN team lead.
When I started watching Star Trek, there was just the one series, now known as “the original Star Trek.” Phrases like “warp speed” and “I’m giving her all she’s got, Captain” infused my playground vocabulary. I’ve kept watching Star Trek through the decades—not everything, but enough to hold my own as a Trekkie.
In this last decade, I’ve worked with hundreds of startups though our various accelerator programs and as the Managing Partner of our venture fund. I often reference Star Trek to help lighten constructive criticism. For example, to help a founder accept the vagaries of equity fundraising, it’s often helpful to say “resistance is futile,” comparing investors to assimilated Borg.
John Doerr is the VC community’s equivalent of Star Trek Creator Gene Rodenberry. When Doerr left Intel to join VC firm Kleiner Perkins in 1980, Intel President Andrew Grove said “John, venture capital, that’s not a real job. It’s like being a real estate agent.”[10]. Doerr went on to invest in iconic companies like Compaq, Sun, Amazon and Google. Doerr is, by many measures, the most successful VC in history.
Doerr’s investment strategy includes considering whether an entrepreneur is a “missionary” or a “mercenary.” The difference is explained in an April 2000 issue (link) of Wharton’s business journal:
“Mercenaries are driven by paranoia; missionaries are driven by passion. Mercenaries think opportunistically; missionaries think strategically. Mercenaries go for the sprint; missionaries go for the marathon. Mercenaries focus on their competitors and financial statements; missionaries focus on their customers and value statements. Mercenaries are bosses of wolf packs; missionaries are mentors or coaches of teams. Mercenaries worry about entitlements; missionaries are obsessed with making a contribution. Mercenaries are motivated by the lust for making money; missionaries, while recognizing the importance of money, are fundamentally driven by the desire to make meaning.” Doerr strongly favors investing in missionary-type founders.
Missionaries and mercenaries on Star Trek? Well there’s plenty of missionaries, including most of the protagonists (Captains Kirk, Janeway, Picard), any member of Starfleet, and even the detached Vulcans. Nearly every Star Trek episode features an alarming threat to the Federation’s mission. Ship’s crew then overcomes long odds to neutralize the threat, often turning enemies into friends for the cherry on top.
Which is why I think the franchise series Star Trek: Deep Space Nine stands out. Unlike every other starship-based show in the franchise, DS9 is based on a space station. Located next to a wormhole that allows rapid intergalactic travel, Deep Space Nine is basically a truck stop. This setup allows for non-starfleet lead characters and an expanded range of motivations. For example, Bajoran Kira Nerys must navigate her loyalties to her people’s squashed rebellion while staying professional at her job as Deep Space Nine’s first officer.
It’s at Deep Space Nine that we meet the franchise’s most obvious mercenaries, the Ferengi. Ferengi entrepreneur Quark runs a casino and bar on Deep Space Nine, which he operates according to the Ferengi Rules of Acquisition. According to the internet, there are 286 of them. This fan site link lists rule number 1 as “once you have their money, never give it back.” Rule 5: “if you can’t break a contract, bend it.” Rule 13: “Anything worth doing is worth doing for money.” My favorite is rule 20: “when a customer is sweating, turn up the heat.”
It’s not surprising that Quark regularly ends up contradicting these rules. Not only do his missionary concessions ensure the likability of his character, they reinforce the morality of the highly profitable Star Trek Franchise, which has generated an estimated $10.6B in revenue since 1966. Deep Space Nine does a nice job of balancing Quark’s mercenary default mode with his missionary proclivities. To me that’s what makes Quark more similar to a real-life entrepreneur than any other Star Trek character.
While I love Doerr’s construct, I’d rather not invest in any entrepreneur that is purely missionary or purely mercenary. For example, when I invested in Nick Martinelli’s startup Marty’s Local, I loved the fact that his company would give small-scale food producers in our region unprecedented access to wholesale markets, allowing the producers to scale, streamline, become more profitable, grow, and create jobs. I also loved the fact that Nick understood that by taking equity investment, he was committing to build a company that he would need to sell within a decade so that his investors could get their money out.
Perhaps my favorite remark on the topic of missionary versus mercenary came from Netse Lytle, the General Manager of our area’s food co-operative, Wild Oats. This is a real food co-op, member owned, mission-driven, local, healthy, sustainable, all that. When asked by a local reporter to describe his responsibility, Netse replied “Ever hear the saying, ‘No margin, no mission?’ I ensure we are profitable.”
So here’s to the missionary and mercenary in all of us, and to the wisdom to know the difference. Live long AND prosper! (And let MFN know if you need help in the prospering department.)
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