Tag: how to identify successful entrepreneurs

Want to identify successful startup founders? Check Linkedin.

Over the past few weeks on the blog, we’ve been exploring how to identify successful startup founders (obviously, this matters A LOT to investors in early stage companies). Are entrepreneurs born or made? I remember a few years back, there were some (credible) studies that seemed to point to the existence of the entrepreneurship gene. In the book, Born Entrepreneur, Born Leaders: How Your Genes Affect Your Work Life, author Scott Shane looked at identical and fraternal twins and their inclinations to be entrepreneurs. The siblings who shared 100% of their genes demonstrated higher rates of entrepreneurship — leading Shane to estimate that 30-40% of successful startup skills are innate. Successful entrepreneurs are more tribal This startup gene theory is being challenged by some more recent work at MIT’s Sloan School of Management (admittedly, the existence of the startup gene would be b-a-d for the MBA program business). In The Power of Alumni Networks — Success of Startup Companies Correlates with Online Social Network Structure of Its Founders, researchers found that university networks whose alumni have a stronger “old-boys-network” (larger...

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How to choose a winning startup (hint, start with the founders)

The 3 M’s angel investors consider before investing As an investor (whether angel, VC, or seed) arguably the most essential element in identifying a promising investment is the management team.  This idea led to the famous mantra that just like in real estate there are 3 L’s – Location, Location, Location; in the startup investing world there are 3 M’s – Management, Management, Management. In fact, many VCs prioritize talented, creative, and experienced management over a great idea, product, or booming sector.  Carlos Eduardo (not the European soccer player) is the co-manager and partner of Seedcamp (a leading micro-seed investment fund in Europe) — he claims that: “A startup’s management team is its lifeblood… no amount of awesome ideas will ever overcome a fundamentally flawed management team.”  (Source) Still not convinced?  Why do startups with great ideas fail? According to research from the University of Tennessee, while almost all startup failure is due to some sort of mismanagement, 30% of all startup failures can be directly attributed to what it describes as Unbalanced Experience or Lack of Managerial Experience....

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