Spent last week helping one of the VCs assess a startup for investment. As always, the pitch deck told one story, but the founder interviews told another.
When you are in the room, what separates a promising team from an investable one often is not the technology or the addressable market.
It is the human capital.
And more specifically, the type of human capital.
Having done a lot of economic intelligence and diligence “in the field” over the years, I’ve found that high-performing leaders possess three types of capital:
Cognitive competence
The best founders are capable of systems perspective in strategy development. They spot weak signals and model second- and third-order effects. They see pattenrs, examine and explore the implications of how technical decisions
will affect the larger system architecture.
Emotional intelligence
Founders with self-awareness know when they’re reactive, when to step back, and when to reframe. They are capable of emotional self-control. Quite a few small biotech CEOs – here on Linkedin – lack that self-awareness to the detriment of their company’s brand.
Social intelligence
Teams that win aren’t led by lone heroes. Such teams are led by people who listen more than they speak, and know how to calibrate trust.
This client-startup had the science. After a long day of behavioral analysis, I recommended that the VC proceed despite some “concerns in the data room.”
It was the CEO’s response to critique, calm, curious, and without ego, that tipped the scales in their favor.
If you would like to do a behavioral assessment of a founding team that you are about to invest into, let’s discuss how we get started.
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