Conviction is a two-way street. Without it, investors and founding teams will not succeed, and both groups are searching for it in each other.
Founders are looking for excited investors who understand their vision straight away. Great startups don’t need just money — they want fit. Right out of the gate, does this investor align with our vision of where we’re going? Investors best speak with their feet, and founders need to see that they fit within an investor’s current community of startups. Founders want evidence that they can draft off an investor’s past work or expertise in a certain sector. They want to know they can leverage deep relationships an investor can bring to their specific vertical.
Investors are looking for jacked-up founders who are passionate about solving a market pain-point they feel burdened to fix. Startup teams that are sold out for their vision, however wacky it might sound, are at the top of any investor’s list. If no one is following you, then you aren’t a leader, and successful founders naturally attract teams due to their energy, determination and tenacity.
You don’t need conviction to state the obvious. Conviction is a muscle that needs daily exercise, and must be built and tested over time. When a founder and investor get together with similar views that others cannot see about how to dramatically change a certain friction-filled corner of the world, sparks will fly. The more contrarian the view and bigger the disruption, the more need for conviction.
Here’s the kicker: when two like-minded parties like this get together, it doesn’t take months to get to a handshake. The process is fast, and diligence is all about the discipline of making sure everyone checks out.
So investors and founders alike: you can’t fake conviction. You are a believer or you or not. Find something you believe in, and own it. Anything less and you are just wasting your (and others’) time.
Recipients of this post are not to construe it as investment, legal, or tax advice, and it is not intended to provide the basis for any evaluation of an investment in any fund. Prospective investors should consult with their own legal, investment, tax, accounting, and other advisors to determine the potential benefits, burdens, and risks associated with making an investment in any fund.
