Successful startups tap into organic customer needs that already exist—a 'pull' from the market. In contrast, 'conjuring demand' involves a founder trying to convince a market of a new worldview without prior evidence. This is a much harder and less reliable path to building a business.

Beyond vision, the most exceptional founders can convince top talent to take pay cuts, persuade investors to fund them, and sign initial customers against all odds. This ability to conjure key resources is a primary indicator of success for early-stage investors to identify.

VCs with operational backgrounds value execution over credentials. They screen for founders who show an instinct to act and build immediately, such as launching a splash page to test demand, before raising capital. This "dirt under the fingernails" is a stronger signal than pedigree.

In capital-intensive sectors, the idea is secondary to the founder's ability to act as a magnet. Their primary function is to relentlessly attract elite talent and secure continuous funding to survive long development timelines before revenue.

While assessed during diligence, the true caliber of a founder—their passion, authenticity, and ability to "run through walls"—becomes starkly clear after the deal closes. This distinction is not subtle; the impact of a truly exceptional founder versus an average one is immediately evident in the business's trajectory.

Beyond table stakes like hunger and vision, the most successful founders exhibit deep empathy ("people gene"), curiosity, and high emotional intelligence. They are secure, know their weaknesses, and often have a background in team sports, understanding that company building is a team effort.

When founders invest their own money, it signals an unparalleled level of commitment and belief. This act serves as a powerful 'magnetic pull,' de-risking the opportunity in the eyes of external investors and making them significantly more likely to commit their own capital.

A truly exceptional founder is a talent magnet who will relentlessly iterate until they find a winning model. Rejecting a partnership based on a weak initial idea is a mistake; the founder's talent is the real asset. They will likely pivot to a much bigger opportunity.

A founder's credibility acts as a multiplier on the perceived value of their narrative. An entrepreneur like Elon Musk, with a track record of success, receives a "multiple expansion on trust," allowing their futuristic stories to attract capital at valuations and scales that a first-time founder could not achieve.