I often find founders frustrated when I pass on opportunities they may feel fit my investment thesis. “I don’t understand; I’m in revenue, am B2B vertical SaaS,” I hear them say. I can understand them not understanding the pass because, on the surface, it might look perfect as a DWP Capital deal.
Most founders don’t understand that over half of my investment decision (and other investors) is based on several founder heuristics that I have collected over the years from deals that have ended up successful. Below are some of the positive markers for a great founder.
Customer Empathy: do they have a deep understanding of their customer’s pain point, and are they willing to stop at nothing to solve it.
Market Knowledge: They know every company that serves their customers as a competitor or has an adjacent offering. Can they effectively articulate how these companies went to market and what they charge?
Are the Likable: Can they attract and retain other employees and investors. Early-stage companies are heavily focused on relationship building.
Dilution Sensitive: Are they worried about the amount of capital they are bringing into the business and have a realistic view of the future value it will create. If they are concerned about their equity before the investment, they will be concerned with your equity after the investment.
