How would you know if you have what it takes to launch a business? One sure way to tell whether you have the makeup of an entrepreneur is when an investor is willing to finance your startup. For some venture capitalists and angel financiers, that investment won’t happen unless the startup founder also shows some promising personality traits.
Here are three attributes discerning VCs want to see in founders before they invest in their startup.
1. Startup founders who understand the risk of being too early to market.
Having an amazing idea is not enough. Founders should have vision, as well as a clear understanding of their target market. Otherwise, they risk running out of money before consumers are ready to adopt their products.
2. Startup founders who plan for tomorrow and five years down the road.
An emerging company has different needs than an established one, and startup founders have to be prepared to address both sets of challenges and opportunities.
3. Startup founders who know what they want.
This is an important characteristic for entrepreneurs who are seeking funding. As founders develop their expertise, they need to understand what to do with that know-how. Preferably, they should pursue a business they really enjoy doing. The founder’s passion serves as a vital foundation for a successful startup.
“Entrepreneurs need game-changing ideas in order to stay alive in their markets. But great ideas are not enough,” says Shlomo Kramer is an angel investor and founder and CEO of Imperva Inc. “When it comes to attracting investors, founders need to demonstrate they offer all of the qualities required for long-term success.”
To see the complete list of seven attributes Kramer wants to see in a startup founder, read his article, What Do Investors Look for in Start Ups?
Entrepreneur and VC Mark Suster lists the qualities that he believes marks a successful entrepreneur.