Traits we look for in founders
AUGUST 28TH, 2018
1.) Domain expertise and a track record of successfully executing against a vision
The first thing we look for is domain expertise in the industry a founder is operating in. How many years of experience does he/she have? In what roles did they operate that were relevant to the new business? What relevant successes can he/she share, and what failures did they learn from? We also like to see that the founding CEO is capable of executing against a specific vision. We want to see CEOs who possess the skills to keep their company operationally focused on the things that really matter. This means the ability to minimize distractions, rally the organization around a common set of goals, and consistently execute against key objectives. The ability to focus and execute gets better with every startup.
2.) Passion and energy
Passion and energy are necessary to build a great company, and also to get others to share the vision. It requires that an entrepreneur, marshal a vision, get other co-founders to share it, convince relatives or venture capitalists to back it financially and implement it, working day and night and on weekends to make it happen. Does the founder have the fire in his/her belly to wake up every morning and bust their butt to execute the business plan? I always want to feel energized being around a CEO. If I feel drained being around an entrepreneur, then I know other people in the company will also be depleted of energy. Leaders have to energize and build morale around lots of stakeholders- employees, customers, and investors, so being a source of energy is a top trait.
3.) Persistence
One of my favorite sayings is “It’s only over when you decide to quit.” Every startup seems impossible at its outset. Many will have multiple near-death experiences. All startups will have doubters who will say its premise is stupid. The ability of a founder to persist through difficult and doubtful times is paramount. I want to back entrepreneurs who, even when things are difficult, choose to keep going. Oftentimes the persistence of a founder is the one trait that determines the success or failure of a startup.
4.) The ability to attract, recruit, and retain top talent
The types of talent that are effective at the startup phase are very different than those needed at the expansion stage. As a company scales, it needs to bring in more tenured, functional professionals to develop the types of processes, structure, and functions necessary for growth. When I meet founding CEOs, I look to see if they are leaders who are capable of recruiting that kind of talent. I like to see that the CEO has attracted a team of experts who can sell, market or design circles around their peers. When I see a team jam-packed with impressive individuals, I know I’m onto a winner.
5.) Willingness to listen
For founders who are willing to listen to it, thoughtful feedback can be used to improve their pitch, their team, or – even better – their product. Feedback can come from investors, employees and most importantly, from customers. We look for founders with a relentless focus on the customer. Without that, founders miss the real opportunities and solutions customers are willing to pay for.
