Successful founders passionately defend their vision while simultaneously processing tough questions without defensiveness. This balance allows them to navigate the 'idea maze' effectively, learning and adapting as they go.
Like a race car driver focusing on the track instead of the wall, founders must concentrate on the path forward, not the myriad things that could go wrong. Obsessing over risks leads to paralysis.
A founder deep in the idea maze can articulate not just their current path, but also the alternatives they considered and why they were rejected. This demonstrates a profound understanding of their domain and problem space.
How a founder interacts with waiters and other service staff provides a candid glimpse into their personality and empathy. This simple observation can be a powerful 'poker tell' for an investor assessing their character.
When founders have lingering doubts about an employee's fit or performance, the doubt itself is the answer. The only remaining question is how quickly to act. Hesitation is confirmation of the problem.
Investors can be non-committal. To cut through ambiguity, founders must create a forcing function by directly asking for the term sheet. If the investor stalls or deflects, it's a negative signal, and the founder should move on.
Many well-funded startups fail by overspending. True frugality—crappy furniture, no fancy PR firms—is a sign of discipline and focus on what truly matters. It is rare for an investor to think a founder is too cheap.
The fundamental difference in mindset is the initial reaction to an idea. A founder acknowledges risks but frames them as manageable challenges in pursuit of the opportunity, while a non-founder's mind goes straight to why it won't work.
McInerney's success comes from profiling founders, not just markets. He seeks deep domain expertise combined with a unique, often unconventional, perspective, believing this combination is key to building disruptive companies.
Investors probe the origin of the first few customers. Hearing about crashing trade shows or intercepting people at coffee demonstrates a founder's determination and ability to get things done without a large budget or existing brand.
Investor Thomas McInerney is turned off by founders who use trendy buzzwords. He believes it shows they are borrowing too heavily from external trends rather than distilling their idea into a simple, core concept.
While starting in a niche is smart, a hyper-specific name like 'SakeDomist' signals a small vision to investors and can hinder pivots to larger markets. A broader name allows for a bigger narrative and Total Addressable Market (TAM).