In the world of startups, there’s a familiar question: Do you bet on the horse or the jockey? The product or the person? The market or the mindset?
Most seasoned investors will tell you they bet on the jockey. Because no matter how promising the idea, it’s the founder who has to steer, adapt, and endure the race.
Some are relentless riders with laser focus. Some switch horses mid-race, sensing the track ahead. Others charge ahead without looking back, while a few step aside when they know the horse needs a different rider.
In this blog, we explore the different archetypes of founders that investors meet along the journey
The Founder with Perseverance
These founders are like rivers that carve their way through rocks with patience and persistence. They don’t just flow around problems; they find a way to break through barriers. They persist year after year, often in spaces where the market isn’t ready yet or infrastructure is missing.
Why Investors Trust Them?
- They have long-term vision and stay committed even when faced with challenges.
- Their deep expertise helps them navigate common pitfalls.
- They do not lose sight of their core mission.
The Founder who knows when to Pivot
These founders are agile. They are quick to seize opportunities and make adjustments as needed. They sense when the wind is changing and shift course without abandoning the map.
And yet, sometimes, investors are cautious, why?
They may gain momentum early but often lose steam.
Some of them could be easily swayed by external factors, constantly shifting their focus based on trends, competitors, or what they perceive as the next big thing. While they may appear responsive, they often lack the internal conviction to stay focused on a single path, constantly changing direction.
So is it flexibility or indecisiveness? strategic adaptation or fear of missing out?
Think of a founder who begins with a food delivery service, then jumps onto the bandwagon of 10-minute delivery, and later pivots again—this time into a marketplace for services. Each shift follows a trend, but none allow enough time to build depth or a moat.
The Realist Who Knows When to Exit
Some founders know when to step back, recognizing their limits and understanding that taking the business further may require expertise they don’t possess. These founders are mature enough to step aside at the right moment to ensure the business continues to thrive.
Why Investors Appreciate Them:
- They protect investor value instead of letting ego run the company into the ground.
- They make strategic decisions based on what’s best for the company rather than letting ego drive them forward.
Think of a founder building a successful enterprise SaaS platform that expands globally, managing enterprise accounts and navigating complex global compliances, which may require a different kind of experienced leader.
The Founder Who Invests in Long-Term Growth
This type of founder is committed to gradual, steady growth, much like a tree that takes years to grow before bearing fruit. They invest in foundational work and understand that success takes time. They are in it for the long haul, knowing that the rewards will come after years of effort.
Why Investors Appreciate Them?
- They focus on building something enduring, prioritizing sustainable growth over short-term gains.
- Their patience and long-term vision can create strong, reliable companies.
- They know that challenges are part of the process and are willing to face them head-on.
Why some investors may still be cautious about them?
- Imagine a founder building a climate-tech solution in a sector where adoption cycles are long, infrastructure is complex, and customer trust is earned slowly. They require patient capital which might take years to yield significant returns thus, not aligning with the lifecycle of investment funds. Companies in the deeptech space often face such challenges!
- They could potentially miss faster-moving trends and fail to capitalize on quicker opportunities.
The Founder Who Charts His Own Course
This founder type is the disruptor. These founders don’t follow trends, but they set them. They don’t build within the system, they redesign it. They often face skepticism early on, but they persist with bold ideas that don’t fit traditional molds. They create markets where none existed and shift consumer behaviour, often standing out as lone voices before the crowd catches up.
Think of a founder who launched a digital payments platform in a cash-dominated economy! Or the online travel space in early-2000s India, when internet usage was low and consumer trust in digital payments barely existed!
Why Investors Pay Attention?
- These founders create category-defining companies, thus unlocking immense value and giving alpha returns.
- They are visionaries with the courage to defy norms.
Watchouts:
- Their ideas may seem “too early” or “too crazy” until they’re not.
- Execution is everything, vision alone isn’t enough.
So, what is the secret sauce: The Kind of Founders Investors Should Bet On
At Auxano, we seek founders who combine expertise, perseverance, and the ability to pivot without losing sight of their vision. Some founders thrive through deep knowledge and careful planning, while others build through adaptability or by focusing on long-term goals. The smartest founders understand their strengths, know when to adapt, and are willing to face challenges head-on. But then, not always we get it right … U do find surprises…
Choose wisely!
Author
Mansi Handa
