What Makes A Good Startup CEO
“Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.”
— Albert Einstein
Building a company is hard. Very hard. Even the most experienced operators, investors, and entrepreneurs fail most of the time. Experienced Angels see good exits only 20% of the time.
The fact is that MOST startups fail. But real entrepreneurs are not afraid of failure. It is just another step towards the ultimate goal. It is experience. And they understand what good startup CEOs are all about. Good startup CEOs:
▪ Do what they are passionate about
▪ Make sure intentions match emotions
▪ Test concept before they raise money
▪ Make sure they want the success they are seeking
▪ Raise money from value-add investors
▪ Assume they will be successful and work backwards
▪ Recognize when they are the problem
Additionally, they understand the qualities that make a good CEO. Backable CEOs are:
1. Able to Build Rapport
2. Committed & Passionate
3. Missionary and NOT Mercenary
4. Innovative
5. Able to Deal with Stress
6. Understand how VCs work
Good CEOs understand story telling, have an exceptional ability to make personal connections, and know how to build rapport. This is extremely important as it ensures that they will be able to:
1. Build Great Teams
2. Sell the Vision of the Company & Acquire Customers
3. Work with Investors and Raise Capital
They are also able to always clearly answer the key questions:
▪ How much capital the need to raise
▪ What does success look like in 12 months
▪ Who is on the team and why
▪ Use of funds
▪ Who is in charge
▪ The go-to-market strategy
▪ How to recruit talent
So for those who still feel compelled to build startups, a good starting point is to understand what it takes, and what the expectations are. It is not easy, but it is incredibly rewarding. As Henry Ford said, “Coming together is a beginning; keeping together is progress; working together is success.”
Ivan Nikkhoo
