The Personality Matters: Insights into the Minds of Top Venture Capitalists
Want to impress a venture capitalist? Show them your personality, not just your business plan 💡
There is a popular belief that venture investment is primarily an investment in people. The investor believes not only in the idea and the market, but also in the ability of specific people to turn it into a big business. A business that will be successfully sold.
Early stage investments elevate this idea to an absolute.
What is there to analyze from a startup when there is nothing to analyze yet? The founders themselves, of course.
The personality of a founder is one of the most important criteria for venture capitalists, with almost 75% of them citing it as a top consideration.
Investors Look for Determination, Adaptability, Domain Expertise, Strong Work Ethic and Clear Communication in Startup Founders: According to a survey by CBInsights, these are the top qualities investors look for in startup founders. The survey analyzed responses from over 100 venture capital firms.
It's a bit too generalized, don't you think? Don't forget that you will not be dealing with an "average investor", but with a very specific person, with their own expectations. So let's get specific.
Here are some quotes from well-known venture capitalists on the criteria they use to evaluate startup founders:
Track record & experience:
"I look for a track record of building things, and evidence of an ability to execute" - Marc Andreessen, Andreessen Horowitz
Passion & drive:
"I want to see a sense of urgency, a fear of failure, and a passion for the business" - Peter Thiel, Founders Fund
Problem-solving skills:
"I want to see founders who can identify and solve problems in a unique and creative way" - Chris Sacca, Lowercase Capital
Market & industry knowledge:
"I want to see a deep understanding of the market, the industry, and the customers" - Reid Hoffman, Greylock Partners
Financial acumen:
"I want to see founders who understand their financials and have a clear path to profitability" - Ben Horowitz, Andreessen Horowitz
Team building & leadership abilities:
"I look for founders who can assemble a talented team, and lead them to success" - Bill Gurley, Benchmark
Communication & presentation skills:
"I want to see founders who can articulate their vision and sell their ideas effectively" - David S. Rose, Rose Tech Ventures.
These are the traits that venture capitalists look for in a founder. It's a mix of business savvy, leadership skills, and a certain je ne sais quoi that makes a founder stand out. So, if you're an aspiring entrepreneur looking for investment, make sure you've got all your ducks in a row, and a personality to match.
P.S. And finally, about my personal experience. If I as an investor have the opportunity to ask a founder just one question. I ask: "What are you most proud of in your professional career?" And a lot depends on whether the answer includes one of the words "did" or "achieved" 🦉