Carles Reina argues that being a good salesperson makes you a better early-stage investor, not the other way around. Core sales skills like qualifying leads, reading people, and having a gut feeling for an opportunity are directly applicable to assessing pre-seed founders and their ventures.
Ken Griffin stresses that selling is the most fundamental, yet often overlooked, entrepreneurial skill. It extends beyond customers to constantly selling your vision to candidates, vendors, and partners. He learned this from a mentor's simple plaque: "if we're all going to eat, someone has to sell."
Merge's founder views the seed round not just as a capital raise but as a test of street smarts and sales skills. How a founder manages intros, creates FOMO, and navigates the "dating game" with VCs is a direct indicator of their future success in acquiring actual customers.
Rather than imposing processes after investing, VCs can use frameworks like the "sales sprint" as a pre-investment litmus test. Sharing the approach and observing the founder's reaction reveals their mindset. A founder who is eager to adopt a disciplined, customer-centric process is a stronger bet than one who must be forced into it.
A startup's initial salesperson should prioritize mirroring the founder's successful sales approach. Their job is to deconstruct the founder's "hook" through observation and trial-and-error, not to immediately implement formal sales processes, metrics, or a CRM. Success comes from successful knowledge transfer, not premature system building.
Fundraising isn't a unique skill; it's a direct application of enterprise sales principles. Founders with a sales background have a significant advantage because they can apply the same tactics of pipeline management, relationship building, and closing to secure investment.
Counterintuitively, the best sales leaders often come from companies with mediocre products. Their ability to hit numbers despite a weak offering demonstrates exceptional sales skills, which are then amplified when they are given a great product to sell.
Peets argues the most crucial, untrainable skill for a startup sales rep is the demonstrated ability to generate pipeline and close net new accounts. He dismisses the common founder obsession with hiring from competitors, stating domain knowledge can be taught, but the grit to land new business cannot.
The most valuable skill from scouting isn't talent evaluation, but developing a "BS detector" from interviewing hundreds of prospects. Cross-referencing claims and watching people act in their self-interest provides a powerful lesson in the human element of due diligence and the overriding power of incentives.
Early-stage founders often make the mistake of grilling candidates in the first interview. Instead, the entire first hour should be dedicated to selling the company, the vision, and the opportunity. You can't evaluate someone who isn't excited to join your mission yet.
Early-stage biotech investing is less about quantitative analysis, as companies lack cash flow for traditional valuation. The primary skill is identifying founders who lack deep domain expertise, citing Y Combinator founders who didn't understand the CPT billing codes their company was based on.