I recently read Jason Calacanis’ post entitled “You don’t have what it takes“. Basically, Jason points out that the vast majority of people don’t have what it takes to build a successful startup. I agree with this assessment.
The reason why the post resonated with me is because, when talking with entrepreneurs, very few investors do what Jason did and tell the entrepreneur that they’re not going to invest because they don’t think the entrepreneur is cut out to succeed. Instead, we tell entrepreneurs that the market isn’t big enough, that the company doesn’t have enough traction, or a myriad of other reasons for why we’re not going to invest. We do anything to avoid saying “it’s you”. I’m also guilty of this behavior.
After reading Jason’s post, I’ve decided to be more direct in my feedback to entrepreneurs. Maybe I’m being naive but I believe there’s a way to tell the truth while still remaining kind. I’m going to give it a try and see how it turns out.