Tag Archives: Quality

Meeting a founder’s team

Most investors state that, together with the market, founders are one of the two key determinants of a startup’s success. While this is true, a founder is only as good as the team they’ve built. As a result, meeting a founder’s team, consisting of the founder’s direct reports and any other key team members, is a great way to evaluate the founder and their startup.

The first benefit of meeting a founder’s key team members is that they reveal¬†how good the founder is at identifying and attracting talent. The more impressed you are with a founder’s key team members, the more impressive the founder who built the team.

The second benefit is in observing the interactions between the founder and their key team members. Who speaks more often on issues pertaining to the team member’s responsibility? How does the founder address their team and vice versa? Do the founder and team members seem perfectly aligned, which is usually a sign that they are not expressing their differences in viewpoint, or do they point out where their perspectives are different and how they’ve decided to move forward to either test out the different hypotheses they hold, or despite their different perspectives?

Meeting a founder’s team in a series of one on one’s, together with holding a group session in which each key team member participates, is a half to one day exercise that greatly improves the quality of an investor’s investment decision.

Consuming

In an earlier post, I wrote about the meaning which you get from producing, and how I believe that it’s worth trading off some short-term happiness for that meaning.

This post is a short observation on the other side of the equation, that is consuming. Consuming doesn’t generate meaning but it does produce a short-term burst of happiness.

When consuming something that you need to pay for, there’s a general correlation between how much you pay and the short-term happiness that you get from the product. For must product categories, the more you pay the higher the quality of the product that you’re able to consume and therefore the greater the short-term happiness that you get from consuming it.

However, in many product categories, this correlation breaks down after a certain point. After a certain point, you’re no longer paying for the higher quality of the product but the social signal that using that product sends to other people, or more accurately the social signal that you believe using that product sends to other people.

When you cross the line where you begin to pay more for a product because of its social signaling value, you’ve effectively agreed to make your happiness dependent on other people’s perception of you.¬†And that’s a fickle source of happiness.