At the Start, Bet on the Founder Who Keeps Going, Not the Business Plan
The pitch may be muddled, but the founder's drive comes through in the details.
mondaymorning.substack.com · Venture PsychologyA venture investor writing about early-stage founders argues that at the inception stage, the earliest stage before a startup has proof it can execute, the bet is on the founder more than the business, since the business will change, along with the product and the market.
Early founders usually arrive with the same kit, an estimate of the market, a description of the customer problem, and a reason the company should exist. That can work for an application, but he says it misses what matters at inception.
To define what matters, he leans on Paul Graham, a co-founder of Y Combinator. Graham puts it this way: "The most important thing to look for in a founder is determination." The test, in Graham's image, is whether a founder drives through obstacles or quits.
Many early explanations are hard to follow. Founders struggle to keep the story short and bury it in complexity. Many also misjudge how grueling the work will be.
Apple co-founder Steve Jobs once said: "I'm convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance."
So the work at inception is to study the person, not the plan. That means asking questions less for the answers than for what the whole response reveals, including emotions and actions.
On rare occasions, he describes a founder he meets as having "a beautiful mix of insanity and intellect." His conclusion is to support that person before results exist, when judgment is clearest and the upside is greatest.
Questions people ask
If the product will change anyway, why do founders still pitch market size and product details?
Investors still want to see that a founder can explain a problem clearly and has thought about who might pay for a solution. A muddled pitch is normal at inception, but the way a founder reasons shows how they think, learn, and simplify. The content matters less than the thinking behind it.
Is determination alone really enough to build a big company?
No, determination has to be paired with learning and adaptability. Relentless founders still need to hire well, manage cash, and change strategy when evidence demands it. Persistence keeps a startup alive long enough for those other skills to matter.
How do investors test for perseverance in a short meeting?
They usually look at past behavior rather than promises, including how a founder handled setbacks, hard work, or long projects. Reference checks, work history, and small follow-up tasks can reveal follow-through. Repeated interactions show whether enthusiasm fades or deepens.