Ian Lucey’s favourite company is Drummohr Software, which makes tax software for the British tax system. The company, founded in 1996, made $2 million per year, and eventually sold out for $20 million.

Not bad for a company run by two guys, and then later with the help of one man’s wife and son. The company’s costs were $30,000 a year to cover the expense of producing and delivering CDs with the tax software on them.

“If your business isn’t simple, you’re probably not thinking about it properly,” Lucey said.

Lucey spoke at the Startup Grind event in Halifax on Tuesday. He is the CEO and founder of the Lucey Fund, a venture technology firm. The Lucey Fund helps early-stage startups build their businesses through technical and financial talent, venture capital and mentorship.

Though only four years old, the Lucey Fund has invested in 85 companies in six countries, including Ireland, where the company is based, the U.S., England and Spain. The company aims to invest in 200 to 300 startups annually.

Lucey said he has never taken more than nine seconds to choose a company he wants to invest in.

“That’s a good idea—and we can sell it,” he said.

Despite his quick intuition, Lucey told many anecdotes throughout the night about his experience with founders who said that they’d go in a profitable direction recommended by Lucey and his team, but quickly returned to the original unprofitable idea.

Lucey said he and his team spend most of their time “making sure startups don’t shoot themselves in the foot,” which is the No. 1 reason he cites for the destruction of a startup.

That’s why Lucey cautioned every founder in the room against the Silicon Valley-fueled image that a venture capitalist is the best choice for every company when it’s often not. In fact, he said that 90 per cent of companies shouldn’t apply for venture capital because they ask for money before they’ve grown on their own.  

“Success is the guy who raises the most money—even though he now owns three per cent of his company,” Lucey said. “We only hear the best, the best, the best from Silicon Valley. ... But the startup community is still very immature.”

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Lucey said that he primarily looks for people with excellent sales ability and passion. His founders are typically over 30 and have quit their jobs to work full-time on their startups.

Not only does Lucey want to invest in passionate salespeople, but those who are also willing to invest in their own talent. Many startups outsource their work or hire someone for cheap—and they almost always have to do a total revamp because they received poor service. 

“If you buy cheap things, you’re going to have to keep buying cheap things,” Lucey said.

Lucey’s business lessons always came along with entertaining stories. Not only does this make Lucey a compelling speaker, but it epitomized his proposition that investors, such as friends and family, don’t just want to hear the math—they are obsessed with stories.

Lucey encouraged founders to send out “non-threatening” emails to friends and family to encourage them to invest. Lucey said the best way to entice a close network is the fear of missing out: what happens if this business is successful in five years and I passed over this opportunity?

“You have to be the cool story…if not, where’s the excitement? Where’s the fear of missing out?”