Author: Omri Drory
Compiled by: TechFlow
You just finished a presentation and felt you did an excellent job. You feel good.
When you exit Zoom or leave the meeting room, you may wonder: What are the investors thinking right now?
Let's unveil this mystery. The investors you just introduced looked at each other for a moment. In that moment, there is an indescribable atmosphere. This atmosphere usually develops into one of two scenarios:
Scenario 1: Overwhelming enthusiasm, unstoppable. We can't wait to start due diligence, and we're even ready to call our partners to recommend your case.
Scenario 2: A quiet atmosphere, everyone just shrugs their shoulders, looking at each other, with an intuition - this may not be what we're looking for.
We are pursuing option 1, that energetic feeling that makes us love this job and willing to hear the pitch countless times. But unfortunately, this is not a common occurrence. If your pitch falls into the atmosphere of option 2, it will be very difficult to reverse the situation and enter the state of option 1.
The importance of first impressions far exceeds people's imagination.
Worse still, if you fall into "Scenario 2", most VCs won't even tell you the real reason. The worst VCs will stall, watching to see if other "top VCs" make a decision first, while stringing you along.
We have written about our core focus points in our investment decisions. The most difficult feedback to give is not about the uniqueness of the technology or the potential of the market, but about the founders themselves.
Sometimes, the reason VCs don't invest is you, or more precisely, their impression of you.
Even in the biotech field, where science and intellectual property are key elements, this phenomenon still exists. And in the software field, this phenomenon is even more pronounced, as transformation is almost inevitable.
Seed round investment is essentially an investment in people. Investors need to be confident that you are the one who can succeed from the seed round all the way to a successful exit.
This feedback is the hardest to accept because it seems unimprovable.
I write this article because I believe that if you can see the big picture, you have a chance to take action. Even if you have excellent technology and a large enough market, if you are not aware that many VCs expect to see certain "intangible qualities" during the pitch, that will be a huge regret.
The Best-Case Scenario
When investors are excited about a founder, they often use a word to describe that person: "compelling".
This is a very key word.
Of course, this is of no help to you. After all, how could you possibly know what qualities a VC will find attractive?
When most VCs think someone is attractive, they mean: I have to invest in this person - it's an indescribable feeling that we only know when we see and feel it.
A fitting analogy may be the so-called "intangible qualities" in football. When evaluating potential NFL quarterbacks, scouts typically score on specific metrics like accuracy, footwork, and strength, but there is also an unmeasurable quality. This "intangible quality" is an intuitive judgment about whether the scout believes the person is a natural winner. This feeling is familiar to us... like when we have an inner certainty that Tom Brady or Patrick Mahomes will lead their team to victory in the final minutes of a game, even when they are behind.
Once you succeed, everyone will say you had this ability from the beginning. But the key is, when you're just starting out, how do you make others believe you have this potential?
While no one can draw a completely accurate "founder trait" blueprint, the following elements may come close to the answer.
Trait 1: You have indomitable perseverance.
Starting a company is a worthy endeavor, but most of the time, it is not easy.
In a nutshell, the founder's job is to silently endure hardship.
Your health may be affected.
Your intimate relationships may be impacted.
You will feel endless "fear of missing out" (FOMO) and "imposter syndrome" - why are others raising funds, hiring, and growing, while you are stuck in place?
Half the time, you'll feel like you don't know what you're doing.
You will face some predictable difficulties, as well as some completely unexpected challenges.
When I was a CEO, in those most difficult moments, I would feel a deep, constricting "death-like tightness" within.
Please read these words again and think about your current life. Maybe you're doing a postdoc, or you have a stable, well-paid job at Google or OpenAI, with a clear career path and broad social recognition.
Even so, do you still want to start a company?
Many first-time founders start without fully understanding what entrepreneurship really means. NVIDIA's co-founder Jensen Huang recently said that if he had to do it again, he might not choose to be an entrepreneur.
Once you've started a company, you'll be more cautious about embarking on entrepreneurship again - which is why serial entrepreneurs usually only start again when they have a truly special idea.
For serial entrepreneurs, the biggest risk is "calling in rich". When things get tough, they may think: If I don't need to do this anymore, why put myself through this suffering?
Successful entrepreneurs often have a special "charisma" that allows investors to believe they are strong enough to weather the tribulations of the entrepreneurial journey. Therefore, before deciding to pitch to venture capitalists (VCs), take a good look in the mirror and ask yourself: Do I really want to go down this path?
If you can truly understand these things, convincing yourself to start a company should be harder than convincing investors. But if you've made up your mind, your investors will definitely feel it.
When this determination comes from the depths of your heart, it will naturally shine through. This also leads to the second point...
Trait 2: You have an imperative determination.
Most outstanding founders start companies not because they "want" to, but because they "must" do it. It's an innate drive, not a rational choice.
The existence of the term "wantrapreneur" is precisely to describe the opposite. Wantrapreneurs are those who choose to be entrepreneurs because they think entrepreneurship is glamorous.
Here is the English translation with the specified terms: This inner drive will be reflected in your daily habits and emotions. You will find that even during "rest" time, you are thinking about the details of your startup. Your browser history may be filled with searches related to your company. Your friends and family may start to find you annoying (see the above about silently enduring hardship). You will be deeply immersed in the "idea maze", even living in the future - for you, those future visions are almost as real as the present. When I founded my first company, TechFlow Compiler, I had such an experience. At the time, I was a postdoc at Stanford, and biology was gradually becoming digitized. The thought of staying in academia and doing pipetting experiments in the lab made me feel like I was going to collapse. I had to be involved in shaping the future of biological technology, and I had an idea to help achieve this goal. Later, a postdoc in the neighboring lab actually quit and started a company - this was the first time I realized that entrepreneurship was something I could actually do. From that moment on, I knew I had to do it. The best founders can see the possibilities of the future. They feel anxious because the reality does not match the beautiful vision of the future in their minds. In their minds, they have already built one - or even several - paths to that future. That's why I like to say that entrepreneurship is like a "wormhole" to a different reality. You have to follow that wormhole to the future you create for yourself and others. If your desire for something is so strong, you will know it yourself, and your investors will feel it too.Trait 3: You genuinely care about people and the cause.
Most founders have heard of "founder-market fit", that is, whether your expertise and skills match the market you are in. But I think there is a deeper layer: you not only understand this market, but you truly care about it. Some people can perform well in a job they don't care about, which is unfortunate but does exist. However, if you want to start a company, you cannot be such a person. You must deeply understand and care about the "why" behind what you are doing. In the field of biology, this is particularly evident, as we often see people getting involved because they want to cure the diseases of their family members or friends. If you truly care, you will be willing to put in extra effort to outperform your competitors. You will be able to discern what is a true breakthrough and what is just incremental improvement. And, to be honest, if you really care, you will find it interesting. This is actually the first step in building a company with competitive barriers. If you care more than others, you will beat them. Naval Ravikant once said: Through authentic self, you can stand out from the competition. But on this point, many people often lie to themselves or to investors. Perhaps you can convince yourself (and your investors) that you care about something for a few years. But in a 7 to 10 year partnership with venture capitalists, you cannot keep up the pretense. This obsession will not fade over time. You can accept that your company occupies 100% of your attention, because... it has already occupied all of your mental space. Don't "fake it until you make it" - become the person who deserves to succeed.Trait 4: You are the "quarterback" of the team
One of the key ways to attract venture capitalists is to demonstrate that you can be an excellent leader. We need to feel that you are the indispensable one. We want to be able to confidently recommend you to other investors and feel proud to be associated with your company. This appeal is highly subjective and difficult to clearly define in a manual. But I believe this intangible quality stems from a deep and multifaceted capability. You not only have a grasp of the big picture, but also attention to detail, demonstrating comprehensive abilities. You can manage the big picture well. You can take a macro view of your pitch, strategically plan financing, develop business plans, maintain company operations, and drive product development. You can also handle the details well. If someone emails you, you can respond quickly, provide in-depth insights, and be comprehensive in the details without getting bogged down in trivialities. If you can do both, you not only have a grand vision, but also prove you have the execution capability. It's like the "quarterback" in a football game. The quarterback is the core of the team, they need to know where the ball should be thrown, and have the ability to deliver the ball precisely - even with just a few seconds left to score. Intangible Traits:- Trait 1: You have unwavering perseverance.
- Trait 2: You have an indomitable determination.
- Trait 3: You genuinely care about people and the cause.
- Trait 4: You are the "quarterback" of the team (symbolizing leadership and overall control).
