Want to get into the head of an investor?

(Do. Not. Recommend. I’m here and it’s terrifying. 😂😂😂)

Seriously though, have you ever wondered what investors looking for when they hear a pitch or meet a founder?

Just like when startups hire, every firm has different values and priorities but here are 5 common “green flags” that investors (including Atlanta Ventures!) look for in founders.

1. Sales Skills

Can they sell?

Selling doesn’t mean greasy used car dealer.

It means compelling storytelling and the ability to transfer belief.

(And it’s why tech sales reps make great startup CEOs.)

Can you get others excited about your vision? Will you be able to get customers, investors, and future employees on board?

#PROTIP
If you don’t have a sales background, you can learn! Here are some great sales books and sales thought leaders to get you started.

2. Ambition

Do they want to build a billion dollar company???

Even if a founder is secretly happy with a $100M exit (and who’s not? 😂), they’ve got to relentlessly go after a huge market to build even a mid-sized startup.

(Here’s why investors love — and require — startups building in big markets.)

That drive for greatness keeps you going even when shit is hitting the fan and you could make 6 (or 7!) figures working a corporate job.

Yes, it can feel a little delulu when you only have 10 customers.

But the most successful founders were thinking big from Day 1 and making 10x decisions that aligned.

#PROTIP
Talk about your big vision and practice answering downside questions with upside answers.

3. Canoe Test

Startups are hard.

Even for wildly successful startups, it’s a rollercoaster with highs and lows and a decade of grinding.

Do you want to paddle a canoe with this person for the next 10 years?

Will it be a fun, wild adventure? Or a sufferfest with finger-pointing and grumpiness?

What will they be like when the boat capsizes or springs a leak?

It can be hard to articulate but it’s a mix of attitude, values-alignment, and general likeability. Quirkiness is a-okay and expected!

#PROTIP
Canoe Test goes both ways. Founders should be vetting investors too. Do YOU want to be in a canoe with this investor for 10 years????

4. Self-Awareness

Can they read the room?

Or are they so maniacally focused on their vision, they don’t notice someone fell asleep and everyone else is confused? 🥴

Self-awareness is the important counterbalance to someone’s vision and ambition.

You need to believe in yourself and not let haters deter you.

But you also have to clued into reality.

It’s going to be hard to pass the Canoe Test without some humility and emotional intelligence!

#PROTIP
Have trouble reading the room? Check out this amazing interview with Vanessa Van Edwards, body language expert, who explains different micro-expressions (and how to be more charismatic).

5. Coachability

Last but definitely not least — are they coachable??

Are they open to an investor’s influence? How do they handle constructive feedback?

Do they get defensive and tell you you’re wrong?

Or do they ask follow up questions to understand more deeply?

What got you here won’t get you there, so a founder’s ability to learn and grow is one of the most important leading indicators of a company’s success.

Growth happens when you seek out feedback and listen judiciously to those around you.

Investors don’t expect founders to be puppets. OF COURSE, founders will take the inputs and do what they think is best. But if a founder is never open to feedback, it will be a frustrating (and short) canoe trip!

#PROTIP
Tons of resources to facilitate personal growth — here are strategies used by top founders and a primer on finding an executive coach.

Like anything in Startupland…there’s exceptions!

Every investor is different.

We have different personalities and life experiences.

Investment firms, like startups, are a reflection of their founder, thus the culture and strategy can vary significantly between firms.

Good news/bad news — there’s no single playbook for success!

Investors, do you agree? What “green flags” do you look for?

Founders, what do you look for in an investor??