First things first — who am I to define anything? Honestly, nobody. But I do talk to a lot of founders, and this is my (and just mine) take after putting in several reps.
I’ve been in early-stage VC for a few years now, and I can confidently say — I love what I do. Why? Easy. I spend 80% (kind of) of my time talking to people who are smarter than me and know more about their markets than I probably ever will. Which means = I’ve got to keep up and keep growing every time. It’s a constant learning curve. And, let’s be real, the people I get to chat with are founders!!! — some of the bravest humans out there and I don’t even need to explain why.
As an early-stage investor, I’m more of a generalist. I don’t pretend to know every market inside out, but what I do understand about is the unique chaos and dynamics of early-stage investing in Latin America.
Sometimes I wonder if I should’ve studied psychology instead of business. Don’t get me wrong — business was fine — but psychology would’ve come in clutch. Early-stage investing is way more about people than it is about markets or numbers. It’s all about THE founder, and investing in long-term relationships. Pre-seed companies come with zero data and plenty of gut feelings, so you’ve got to read people like a pro. I’m out here trying to picture founders 15, 20 years (minimum) down the line — no easy task when their company isn’t even operational yet.
Here are some questions that come to my mind when meeting a founder:
- Can they attract and keep great talent with basically no money?
- Are they creative enough to deal with the inevitable obstacles that will appear down the road?
- Can they lead a team of 5 today and scale that to +5,000 in the future?
- Are they obsessed enough with their problem to dedicate the next 20 years of their life to it?
Finding the answers to these questions can be challenging, and a lot of my “pillow thoughts” are spent on this topic. I may never fully crack it, but in the next paragraphs, I’ll share some of the (honest) reflections on what I’ve noticed great founders tend to have in common.
You often hear that great founders have shiny LinkedIn profiles, stacked with logos from top companies or universities, even better with a prior exit. Sure, those things matter, but they don’t tell the full story. They set high expectations though, so if that’s you — be ready to live up to them.
Being a great founder is about what you’ve learned from all your experiences — not just the ones on your CV — and how those learnings give you an edge. It’s about the unfair insight you’ve gained that no one else has and how you’ll use that to win in your market.
Now we’re talking.
In my search for exceptional founders, I’ve boiled down a few key pillars they all seem to have:
- Obsession with the problem: To build something big, obsession is non-negotiable. You need to be so wrapped up in the problem that you can’t imagine a world without your company solving it. We’re talking a 20-year commitment, minimum.
- Ability to learn quickly: Mistakes happen, especially in the early stages. The best founders learn fast, pivot faster, and turn every failure into a valuable lesson.
- Adaptability on the solution: Be obsessed with the problem, but flexible with the solution. The market will throw curveballs, and founders need to adjust their approach without getting too attached to their original plan.
- Unfair insight on how to win: It’s not just about having impressive logos on your resume. What unique experience gives you an unfair insight about the market? What do you know that others don’t? What are the others getting wrong?
- Spikiest spike: No founder is great at everything. The exceptional ones have a standout strength — a “spike” that sets them apart. It’s far better to have one killer skill than be average across the board.
- Self-awareness and ability to attract talent: Knowing what you’re good at — and what you’re not — is crucial. And great founders surround themselves with talent to fill those gaps.
Before I sign off, one more thought:
I like to ask founders, “What’s keeping you up at night?” It helps me gauge how in tune they are with their company’s challenges. Pro tip: the answer shouldn’t be fundraising. In early-stage, fundraising is constant. If that’s the only and biggest thing stressing you out, buckle up, because there’s more to come. The real answer should be about the actual challenges and monsters you’re facing. Transparency is key (but be careful what you share)— it shows you truly have a handle on the business. And if you’re on top of things, there won’t just be one issue; there’ll be a zillion. The best response? ‘There are so many, we’ll need another call to cover them all.’ 😉
