Summary List Placement
Founder pitch meetings have a lot in common with dating. Founders tell their life stories, their adversity, why their company means something, and investors want to be swept off their feet.
If it goes well, they take a leap of faith and commit.
“That sounds crazy to me,” said Arjun Sethi, a cofounder and partner at Tribe Capital. “But that is how some people make investments.”
In fact, it’s how most VCs make investments, especially at the early stages. Renowned seed VCs espouse the virtue of trusting their gut and picking founders they love, even if the product is still just an idea in a pitch deck.
Founders Fund’s Keith Rabois said he’s a “founder-driven investor,” instead of being “technology-driven” or “market based.” Famed VC Marc Andreessen wrote that, when a startup is new, “the decision is driven almost entirely by the people.”
Sethi’s Tribe Capital — cofounded with fellow Social Capital alums Jonathan Hsu, Ted Maidenberg, and Jake Ellowitz — rejects that notion entirely. Sethi said that when a founder pitches them, he simply tells them, “Give us access to your raw data, and we’ll do the work from there.”
For every founder it meets, Tribe Capital analyzes the …read more
Source:: Businessinsider – Tech