I’ve spent the better part of two decades as a partner at a large law firm, advising founders, boards and investors on mergers and acquisitions, growth equity financings, joint ventures and other strategic transactions. My practice centers on innovation – helping companies that are building for the future navigate the capital they need to get there.
And yet, after years of closing deals, from my perspective, the investors and companies that innovate the most are the ones that made it a priority to invest in their people.
People Before Product
It may sound counterintuitive in industries obsessed with product launches, valuation milestones, social media and headlines, but many of the investors I’ve represented invested first in people and trusted that good people would figure out the necessary economics later.
Employees who are given the tools, mentorship and space to grow don’t just execute the plan, they evolve it and take it to heights not initially anticipated.
Lessons From Nashville’s Innovation Economy
Here in Nashville and the greater Middle Tennessee region, the evidence is everywhere. Nashville may be famous for its music, but it’s also a rising hub for healthcare, fintech, manufacturing and creative industries.
In one transaction, I advised a growth-stage Nashville company that had just secured a sizable round of funding from out-of-state investors. What impressed me most was not their technology, but their insistence that part of the capital be earmarked for employee education and retention programs. The lesson applies across industries.
Nashville offers a compelling case study in this philosophy. The city’s innovation ecosystem thrives because of collaboration. Healthcare giants partner with scrappy startups. Universities incubate talent that flows into high-growth companies. Musicians and technologists intersect in creative spaces. The common denominator is people who are passionate, skilled and connected. It’s no coincidence that many investors are turning their attention here.
The Most Rewarding Part of My Work
Clients often ask me what I enjoy most about my practice. My answer is always the same: I love advising people with respect to personal experiences with their businesses or investments that are life-changing moments or the building blocks for future life-changing moments.
These transactions are not merely financial, they are deeply personal. They mark a transition from – or the culmination of – years of hard work.
Patterns Across the Deals
Over the years, I’ve noticed consistent patterns:
- Companies that prioritize culture over short-term metrics endure. They weather downturns better because employees are committed, not just employed
- Leaders who invest in people create multiplier effects. One mentor trains multiple junior associates, who then mentor younger employees, creating innovation across various areas.
- Retention strategies matter more than recruitment glitz. It’s not about attracting talent with short-term incentives; it’s about keeping them with purpose and growth.
In investing, investors often talk about “moats” – defensible advantages that protect a company from competitors. My view is that the strongest moat is people. Technology can be copied and markets shift, but a team that works cohesively and is committed to a mission is hard to replicate.
A Closing Thought
Innovation is not a lightning strike of genius – it is the cumulative effect of people who are supported, challenged and trusted. The best capital structures, the cleanest M&A transactions, and the most favorable strategic transactions all serve one ultimate purpose: to enable people to keep building.
Because in the end, investing in people isn’t just good business – it also allows businesses to truly innovate.
Tyson Bickley is a partner in Holland & Knight’s Nashville office.
