Ms. Desai at various Startup Competitions, Panels, Universities, etc.
1. Dream Big with Ideas that Scale
It’s no secret that VCs are looking to drive massive revenue. That massive revenue often comes from a viable business model. However, it all starts with a clear purpose to build and sell products and services that are going to touch millions of lives by the introduction of a creative technology that is industry defining, which will eventually build a company that is going to stand the test of time. A Founder must have a clear vision, a purpose, and the ability to dream big in order to achieve that objective.
2. Personality Traits
How hard and long will a Founder work to make this dream a reality and their business a success? The Founder is typically the best sales person in the company. With that in mind, can the Founder effectively communicate his or her ideas? Or do they lack focus? Are they easily distracted or highly disciplined? How effective they are is often driven by how focused and how dedicated they are to ensure combined success. Moral compass and trustworthiness are non-negotiable, especially when it comes to integrity and ethics. Great Founders don’t just build companies; they inspire teams, pivot through crises, and create cultures that attract top talent and investors alike.
3. Industry Expertise and Specific Knowledge
Growing an idea into a large-scale sustainable business requires more than just grit and hard work - it requires specific knowledge of the industry, which sometimes comes with years of experience or sometimes lack of it. What choices need to be made to help the company grow substantially? The Founder will be driving many of the decisions, so what are the right choices for the company? What’s their basic education? Is it related to the field that they are working in? While some industries require both expertise and experience, there are some that don’t require as much experience, in those cases do they have a track record of innovation when they don’t have the years of experience under their belt? These are all things to keep in mind, but this is all relative on an individual/situational basis.
4. Adaptability
Circumstances change all the time. What is working today may not work tomorrow. How well can you adapt? Are they problem solvers? Founders need to be ready and open to constant change. When listening to the pitch, for example, how do they respond to curveball questions? VC firms want to know how well you respond to “What if” scenarios. Do you have a vision for how to respond to unique challenges in your industry? If you can’t adapt, your business will not succeed. Therefore, it’s important for VC firms to clearly understand how adaptable a Founder and their team is.
5. Choices
Life is about choice and your business is shaped by the choices you and your management team make. People are what make every business unique — even two businesses operating in the same space. In the early stages, however, it’s difficult to predict what choices a Founder will make, so VC firms may evaluate the choices that have been made. A key choice every Founder makes is his or her management team. Strong managers hire well to address the strategic areas of a growing company’s needs. They set aside ego and look for people who are better than them in some meaningful way. There is no such thing as a single perfect Founder that can handle any given situation. However, there are strong teams that come awfully close. Also, how has the management team used their limited resources up until now? Have they burned through cash like there was no tomorrow in the hopes of finding more, or have they deliberately managed cash flow in ways that directly influenced positive growth?
While not specifically a quality that most VC firms seek out, it helps to have a Socially Responsible business. Doing well by doing good is not only good business – it serves better in the long term as well. Long-term, one needs a business model that applies to the industry they serve, and the fact that it has a positive impact on the world is a bonus that will make the market of the product or service widely acceptable. There are many examples of Founders who have survived and thrived by making the world a better place. Those are the winners and companies that have stood the test of time.