{"id":15980,"date":"2024-12-20T13:07:42","date_gmt":"2024-12-20T13:07:42","guid":{"rendered":"http:\/\/TheNextWeb=1411649"},"modified":"2024-12-20T13:07:42","modified_gmt":"2024-12-20T13:07:42","slug":"4-key-traits-this-silicon-valley-vc-looks-for-in-founders","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=15980","title":{"rendered":"4 key traits this Silicon Valley VC looks for in founders"},"content":{"rendered":"\n
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Every year, millions of businesses are created around the world. In order for these big ideas to turn into successful startups<\/a>, most of them will inevitably come up against the challenges of fundraising. <\/span><\/p>\n

While there is no magic formula, there are variables that founders<\/a> can hone in on when engaging with potential investors. TNW sat down with San Francisco-based VC Plug and Play early-stage investor Letizia Royo-Villanova during the <\/span>Red Bull Basement global final in Tokyo<\/span><\/a> to get her insights. <\/span><\/p>\n

The one thing that really needs to stand out, according to Royo-Villanova, is the drive and authenticity of the founder. \u201cMaybe they\u2019ve experienced a problem, or know someone that has experienced that problem, and so they really want to solve it. Not because of making money \u2014 of course that\u2019s a plus \u2014 but because they actually care about solving that problem.\u201d<\/span><\/p>\n

In addition to said passion, the ability to sell is another key skill. Founders are constantly required to sell their ideas to investors, to clients \u2014 and also to talent. \u201cThe best founders will have the best talent in their team,\u201d Royo-Villanova states. <\/span><\/p>\n

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While direct industry experience is valuable, it\u2019s not always essential. \u201cThere are great entrepreneurs out there that don\u2019t necessarily have that experience. They are kind of born with that drive of founding a company.\u201d <\/span><\/p>\n

However, having insight into the customer and understanding the market are non-negotiables: \u201cYou really need to understand the pain point and the industry. That is going to facilitate a lot of doors opening in the future,\u201d the VC adds.  <\/span><\/p>\n

Lastly, personality and rapport matter. \u201cI do think that you feel it in the first half hour,\u201d Royo-Villanova says, referring to understanding whether a founder is someone the VC is going to want to spend time with. \u201cIf you end up investing in a founder, you are going to have a lot of meetings with that person. So if you don\u2019t feel the vibe, you don\u2019t want to invest in them.\u201d<\/span><\/p>\n

Mistakes founders make when pitching<\/h2>\n

Even though a founder may have the best idea imaginable, creating an impactful pitch is essential in order to get investors on board. (Not everyone has the good fortune to survive a disastrous pitch like the one Nvidia co-founder Jensen Huang <\/span>famously gave Don Valentine of Sequoia in 1993<\/span><\/a>.) <\/span><\/p>\n

One of the most common mistakes Royo-Villanova sees is founders spending too much time on describing the general problem as opposed to focusing on their specific solution. \u201cIf it\u2019s a climate or sustainability startup,\u201d the VC explains, \u201cand they spend 15 minutes talking about how there\u2019s a climate issue, I don\u2019t need to hear that. They could tell me in one or two sentences. Then we can concentrate on more important things.\u201d<\/span><\/p>\n

And while solo entrepreneurs may well succeed, the VC is more likely to consider funding a founder team of two or more. \u201cBuilding a startup is hard enough, and if you do it by yourself, what if you suddenly have a bad week or a bad month? You need that other person to hold you up,\u201d she says. Furthermore, teams with complementary skills are more likely to drive success in the future. <\/span><\/p>\n

Common pitfalls when running an early-stage startup<\/h2>\n

Of course, beyond the pitch, there is also the small matter of actually running the business. Specifically, when it comes to fundraising, Royo-Villanova believes that a major misstep is taking money from any available investor without considering strategic alignment. <\/span><\/p>\n

\u201cThe money is going to run out, but the support from the people that invest in you shouldn\u2019t,\u201d she says. The right VC can offer help with recruitment, sales, or industry network connections. <\/span>
<\/span>
<\/span>Pivoting back to the question of talent, hiring decisions is a critical area when it comes to running the business. Founders often try to save money by hiring cheaper talent, but Royo-Villanova says this can backfire further down the road. \u201cIt\u2019s about finding the right fit for your company and building a culture from day one,\u201d she says. <\/span>
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<\/span>Finally, an inability to pivot is another potentially fatal flaw. \u201cIf you have an idea, talk to potential customers from day one, understand if this is something that is actually a problem and that they are going to prioritise and that they are going to pay for and if not, it\u2019s ok to pivot. If you\u2019re going to fail, fail fast \u2014 and it\u2019s not even failing, it\u2019s just changing to something else.\u201d<\/span><\/p>\n

Focus on education and supportive regulation could drive European innovation<\/h2>\n

With all the concerns and recent discourse around the innovation gap between the US and Europe, we could not help but ask the California-based VC what she feels are the most significant areas holding Europe back. <\/span><\/p>\n

One of the main issues she identifies as a lack of early exposure to innovation and entrepreneurship. \u201cI don\u2019t feel I was aware of the world of innovation or venture capital as much as probably some students in the US,\u201d Royo-Villanova (who hails from Spain) says. \u201cIf you start from a very young age to introduce that culture of innovation and explain how important it is, it\u2019s going to help a lot in the future.\u201d<\/span><\/p>\n

Regulation and corporate attitudes also play a role. European corporations can often exhibit a risk-averse mindset, in contrast with a more dynamic and entrepreneurial culture from their North American counterparts. Moreover, complex regulatory frameworks can stifle startups from scaling quickly \u2014 something initiatives such as the recently launched <\/span>EU Inc<\/span><\/a> hope to overcome. <\/span><\/p>\n

Founders seeking to build successful startups need to embody passion and an ability to sell, as well as customer insight, while avoiding common pitfalls including neglecting strategic fundraising and failing to pivot quickly. Meanwhile, Europe\u2019s innovation ecosystem would benefit from early education, a shift in corporate attitudes, and streamlining regulations. <\/span><\/p>\n

Addressing all these challenges together could unlock tremendous opportunities for European startups to create a virtuous cycle of innovation and investments, and <\/span>spawn more winners<\/span><\/a> on the global stage. <\/span><\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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