I recently gave a presentation on what makes a great founder, and in preparing for the presentation, realized that I was missing two attributes.
The first attribute is adaptability. Since a startup is essentially a series of experiments designed to solve different problems at different stages of the company, adaptability is a key part of being a great founder. Specifically, knowing what you need to do (intelligence) and doing it yourself (personal energy) or by attracting and motivating others (collective energy) isn’t enough. You also need to be able to change what you’re doing altogether when it isn’t working, or to change how you go about what you’re doing based on where your startup is in its life journey. This requires adaptability.
The second attribute is ambition. Startup outcomes are governed by power laws, whereby a portfolio’s best performing startup’s return can be exponentially greater than that of the second best performing one, the second best performing startup’s return can be exponentially greater than that of the third best performing one, and so on. As a result, each of the founders that an investor backs needs to have the potential to deliver that best performing startup outcome that will drive the investor’s fund level returns. And this requires being a very ambitious founder.
So the attributes through which I now define a great founder are integrity, intelligence, personal energy, collective energy, adaptability, salesmanship, and ambition.