There are several things I consider before investing in a startup company.
The talent and passion of the team. The product. Their vision and the why behind their company. If the product has launched I will certainly look at the metrics of the product/business.
But in the final moment when I’m contemplating if I’m in or out, I try to picture myself working at the company. Can I imagine working for the founders every single day.
If I can’t comfortably answer that question positively then I tend to back off.
I’ve made the mistake of investing in a startup with a great team and interesting idea but without a strong connection and it just didn’t work for me.
Maybe I’m doing this VC thing wrong but the way I look at investing is similar to how I would look at it if I was a prospective employee.
In many ways the employee is making a choice with something much more valuable than our venture capital funds — namely, their precious time.
These days I spend a significant amount of energy helping our portfolio companies recruit the best possible people for their mission.
I love it. It’s one of the favorite parts of this job of mine.
And it feels good to say that every company I work with is one that I would feel fortunate and passionate to work at.