Venture Capitalists Want Founders Who Can Take Advice
Four venture capital firms stated that they want more than just explosive growth when they invest in companies, according to Business Insider.
Investors at Andreessen Horowitz, Bain Capital Ventures, Citi Ventures, and Insight Partners shared what they look for in a startup founder. Investment decisions involve getting to know the founder and determining the growth of their business but can take as much as 3 years.
"We assume that most of them will fail. That's actually the business we're in, that more than half of the startups we back will fail," said Bain Capital Ventures partner Matt Harris. "I think VCs who don't really understand that are never going to help to build great companies."
Furthermore, the firms stated that it is essential for founders to consider advice from the different networks and teams venture capital firms open with their investment.
"There are founders who come in who it has to be their exact way and — we'll still look at the business and we'll probably still be interested at times — but for us, it's really important to find a good partner," Byron Lichtenstein of Insight Partners said.
Venture capital firms consider a lot more than explosive growth when it comes to investing in companies.