It’s no secret that Early-stage VCs invest in the team & not just the idea.
For 53% of VCs it is the single most important factor.
But what do they mean when they say that the team is the most important factor? Does it mean Ivy League?
65 of 242 VCs said their judgment of the founding teams’ ability.
59 of 242 VCs said the team’s passion was the important part.
For most VCs, when start-ups are founded by Ivy League graduates, what they read is just this –
ability (because they must have some aptitude and a certain hunger to prove themselves)
& passion (because what else would make them leave cushy careers to get back into the grind).
Added to this is the confirmation bias from some earlier investments going well.
But this is only a shortcut formula they use – not the unwritten tenet.
Any team that can showcase these 2 traits in their team can still command quality investment opportunities from some of the best VCs.
Provided you remember to showcase them consciously and break old habits.
Some of the best VC investments have happened outside this formula.