By Omri Drory

Compiled by: TechFlow

You just gave a presentation and you think you did a great job. You feel good.

As you log out of a Zoom call or leave a conference room, you might wonder: What on earth are investors thinking at this moment?

Let's unravel this mystery. The investors you just introduced looked at each other for a moment. In that moment, there was an indescribable atmosphere. This atmosphere usually develops into one of the following two situations:

Scenario 1: We are so enthusiastic that we can’t wait to start due diligence and are ready to call our partners to pitch you.

Scenario 2: The atmosphere is quiet, everyone just shrugs and looks at each other, a feeling rising up — this might not be what we want.

We seek option 1, that energetic feeling that makes us love this work and willing to listen to countless pitches. Unfortunately, this is not common. If your pitch falls into the atmosphere of option 2, it will be very difficult to turn things around and enter the state of option 1.

The importance of first impressions far exceeds people's imagination.

Worse still, if you belong to 'Scenario 2,' most venture capitalists won’t even tell you the real reason. The worst VCs will delay, watching to see if other 'top VCs' will make a decision first, while giving you the runaround.

We have previously written about our core concerns when making investment decisions. The hardest feedback to give is not about the uniqueness of the technology or the market potential, but about the founder themselves.

Sometimes, the reason investors don't invest is you, more precisely, their impression of you.

Even in the biotech field, where science and intellectual property are key elements, this phenomenon still exists. In the software field, this phenomenon is particularly pronounced because transformation is almost inevitable.

Seed funding is essentially an investment in people. Investors need to be convinced that you are the one who can go from seed round to successful exit. This feedback is the hardest to accept because it seems impossible to improve.

I wrote this article because I believe that if you can see things from a holistic perspective, you have the opportunity to take action. Even if you have excellent technology and a sufficiently large market, if you are not aware that many VCs expect to see certain 'intangible traits' in a presentation, it will be a huge regret.

Best case scenario.

When investors are excited about a founder, they usually use one word to describe that person: 'convincing.'

This is a very critical word.

Of course, this is of no help to you. After all, how could you know what traits a particular VC finds appealing?

When most VCs find someone attractive, what they mean is: I have to invest in this person — it’s an indescribable feeling, one that we only recognize when we see and feel it.

A fitting metaphor might be the so-called 'hard-to-quantify traits' in football. When evaluating potential NFL quarterbacks, scouts usually score based on specific metrics like accuracy, footwork, and strength, but there’s also a trait that can't be measured by data. This 'hard-to-quantify trait' is an intuitive judgment about whether the scout believes someone is a natural winner. We are familiar with this feeling... like when Tom Brady or Patrick Mahomes are trailing in the last few minutes of a game, we have a certainty in our hearts: they will lead the team to a comeback and win.

Once you've succeeded, everyone will say you had that ability from the beginning. But the real key is how to get others to believe in your potential when you're just starting out.

While no one can draw a completely accurate blueprint of 'founder traits,' the following elements may come close to the answer.

Trait 1: You have unyielding perseverance.

Starting a company is a worthy endeavor to fight for, but most of the time, it is not easy.

In one sentence, summarize the work of a founder: quietly endure hardships.

Your health may be impacted.

Your intimate relationships may be impacted.

You will feel endless 'fear of missing out' (FOMO) and 'imposter syndrome' — why are others fundraising, hiring, and growing while you are just standing still?

Half the time, you will feel like you don't know what you are doing at all.

You will face some foreseeable difficulties and encounter some completely unexpected challenges.

When I was a CEO, in those toughest moments, I would feel a deep, 'death-like constriction' within.

Please read these words again and think about your current life. Maybe you are pursuing a postdoc, or you have a stable job at Google or OpenAI, with a generous salary, a clear career development path, and widely recognized social status.

Even so, do you still want to start a company?

Many first-time founders start without a clear understanding of what entrepreneurship truly means. Jensen Huang, the founder of NVIDIA, recently stated that if he could do it again, he might not choose to become an entrepreneur.

Once you start a company, you will consider more seriously whether to venture into entrepreneurship again than you did the first time — this is also why second-time entrepreneurs usually only start again when they have a truly special idea.

For second-time entrepreneurs, the biggest risk is 'rich exit syndrome.' When things get tough, they might think: If I don't need to do this anymore, why put myself through this pain?

Successful entrepreneurs often possess a special 'charisma' that convinces investors they are strong enough to endure the hardships of the entrepreneurial journey. Therefore, before you decide to pitch to venture capitalists (VCs), take a look in the mirror and ask yourself: Do I really want to go down this path?

If you can truly understand this, then convincing yourself to start a business should be harder than convincing investors. But if you have made up your mind completely, your investors will definitely feel it.

When you deeply desire to do this, that determination will naturally show.

Trait 2: You have an unwavering determination.

Most outstanding founders start companies not because they 'want' to, but because they 'have to.' It's an intrinsic impulse, not a rational choice.

'Wantrapreneur' exists to describe this opposite. A wantrapreneur is someone who chooses to start a business because they think entrepreneurship looks glamorous.

This intrinsic impulse will manifest in your daily habits and emotions. You will find that even during 'breaks,' you are thinking about the details of your startup. Your browser history may be filled with searches related to your company. Your friends and family may start to find you annoying (see above about quietly enduring hardships). You will be trapped in a 'maze of ideas' and even live in the future — for you, those future visions are almost as real as the present.

When I started my first company, Genome Compiler, I had such an experience. At that time, I was doing a postdoc at Stanford, at a time when biology was gradually becoming digital. The thought of staying in academia and doing pipetting in a lab made me feel like I was about to collapse. I had to be involved in driving the future development of technological biology, and I had an idea to help achieve that goal.

Later, a postdoc from the next lab actually quit to start a company — this was the first time I realized that entrepreneurship was something I could truly pursue. From that moment on, I knew I had to do it.

The best founders can see the possibilities of the future. They feel anxious that reality has not met the beautiful vision of the future in their minds. In their minds, they have already constructed a path — or even several paths — leading to that future.

That's why I like to say that entrepreneurship is like a 'wormhole' to different realities. You have to follow that wormhole to the future you've created for yourself and others.

If your desire for something is so strong, you will know it, and your investors will feel it too.

Trait 3: You genuinely care about others and your mission.

Most founders have heard of 'founder-market fit,' meaning whether your expertise and skills match the market you are in. But I believe there’s a deeper layer: you not only understand this market but also genuinely care about it.

Some people can perform well in a job they don’t care about, which is unfortunate but does happen. However, if you want to start a company, you cannot be that kind of person. You must profoundly understand and care about the 'why' behind what you are doing. This is particularly evident in the life sciences, as we often see people getting involved to cure diseases affecting their family or friends.

If you truly care, you will be willing to put in extra effort to surpass your competitors. You will distinguish what is a true breakthrough from mere incremental improvements. And frankly, if you really care, you will find it interesting.

This is actually the first step in building a company with competitive barriers. If you care more than others, you will beat them.

Naval Ravikant once said: You can stand out from the competition through your authentic self.

But at this point, many people often lie to themselves or to investors. Maybe you can convince yourself (and your investors) that you care about something for a few years. But in a 7 to 10-year relationship with venture capitalists, you can't keep pretending.

This obsession does not fade over time. You can accept that your company occupies 100% of your attention because... it has already taken up all your mental space.

Don't 'fake it till you make it' — instead, become the person who deserves to succeed.

Trait 4: You are the core of the team.

One of the keys to attracting venture capitalists is showing that you can be an excellent leader. We need to feel that you are the person we must invest in. We want to confidently recommend you to other investors and feel proud to connect with your company.

This attractiveness is very subjective and difficult to clearly define with a manual. But I believe this intangible trait stems from a deep and multifaceted ability. You can grasp the big picture while also paying attention to details, demonstrating a comprehensive capability.

You are able to see the big picture well. You can examine your pitch from a macro perspective, strategically plan financing, develop business plans, maintain operations, while also driving product development.

You can also handle details well. If someone emails you, you can respond quickly, provide in-depth insights, while being comprehensive enough on the details, without getting bogged down in trivialities.

If you can do both at the same time, you not only have a grand vision, but also prove you have the actual execution ability.

It’s like the 'quarterback' in a football game. The quarterback is the core figure of the team, who not only needs to be clear about where the ball should go but also has the ability to deliver the ball accurately at critical moments — even with only a few seconds left to score.

Hard-to-quantify traits:

  • Trait 1: You have unyielding perseverance.

  • Trait 2: You have an unwavering determination.

  • Trait 3: You genuinely care about others and your mission.

  • Trait 4: You are the 'core quarterback' of the team (symbolizing leadership and overall control).

Showcase yourself, not just your company.

If you have clear goals, an excellent team, and outstanding technology... you will be surprised to find that raising funds is not as hard as you might think. But if you overlook your core role in this story, you may encounter many obstacles.

Many founders don't realize that in a pitch, you are not just pitching the company, but also showcasing yourself.

If you are continually rejected — the problem may not be your idea but rather how investors perceive you. This feedback is often hard to accept, so usually, no one will tell you directly. Moreover, not every investor's judgment is necessarily correct. Different investors will have different views of you. You cannot please everyone, but that’s okay. Find investors who are right for you and keep pushing forward.

But if you can take some time to look at it from a different perspective, it’s actually just a new way to view your pitching process.

Possess those hard-to-quantify traits and become that indispensable person. Then show us these traits and make us believe that you are the best choice.