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For an operator-investor in physical industries, being hands-on isn't just strategy. It means showing up during a crisis. Lior Susan recounts flying to a portfolio company's flooded data center and spending 72 hours on the floor helping fix the problem, demonstrating an extreme level of commitment.

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Even at significant scale, Alex Bouaziz maintains a deeply hands-on approach, believing it's a critical cultural pillar. Being involved in day-to-day problems and customer issues prevents him from being too far removed from the business. This proximity allows him to identify flaws in org design, response times, and processes that are invisible from a '10,000-foot view'.

A VC's time spent in industry operating roles is invaluable. It fosters empathy for the day-to-day challenges CEOs face, enabling the investor to be a more practical and effective partner, not just a source of capital or high-level advice.

Beyond a process, Northwood's CEO defines "end-to-end ownership" as the deep personal care and investment an employee has in the mission's outcome. This level of commitment goes far beyond a job description, motivating actions like staying up 24 hours to get a system running because you care about the result.

Many managers focus solely on raising funds and making investments. Lior Susan emphasizes operating his firm, Eclipse, like any other company, obsessing over details like quarterly reports and AGMs. This business-first mindset is key to attracting top LPs, partners, and founders.

A core Musk method is the immediate physical relocation to the site of a problem. This isn't a suggestion but a strict operational rule. It ensures direct, unfiltered information and demonstrates extreme ownership from the factory floor to the CEO.

To maximize value creation, young private equity firm Teopo Capital made a strategic decision to hire a full-time operating partner dedicated to portfolio companies before building out a fundraising team. This signals a deep commitment to hands-on operational improvement as their core strategy.

Ron Conway of SV Angel argues that top-tier angel investing isn't passive. It's an active, holistic approach to helping the "whole founder" with their career, team-building, and even personal crises. The mantra is "you're all in or don't bother," treating founders as people to advocate for, not just investments.

During a crisis, a CEO's job is twofold. First, ensure the best people are activated and fully supported. Second, focus on high-leverage tasks only the CEO can perform, like public communication or raising emergency capital overnight.

Lior Susan highlights the biggest mental hurdle for former operators becoming VCs: internalizing the power law. Operators are builders wired to fix problems and believe they can turn any situation around. In VC, success is driven by a few massive outliers, requiring focus on winners, not on fixing every company.

To become a truly great investor, you must first experience the chaos of being a business operator. Running different types of companies, including failures, builds the firsthand knowledge and intuition needed to accurately assess the quality and risks of a potential investment.

Hands-On Investing Means Flying to a Flooded Data Center to Personally Fix It | RiffOn