The “Need to be Right” Founder
Most outsiders don’t understand that Venture Capital is ultimately a sifting exercise. VCs meet with hundreds (sometimes thousands) of Founders every year searching for the perfect combination of a brilliant idea and an exceptional leader. A direct result of the “volume game” is that VCs learn to bucket Founders into a variety of personality types with many of these profiles being “un-investible”. And just this week I encountered a common red-flag profile that led to a quick decline: The “Need to be Right” Founder.
Here’s how this Founder showed up during our 1-hour call:
The Dismissive Nod
The Founder nodded to my feedback and suggestions but it was very clear they weren’t listening. They did everything they could to “get back to their pitch” and didn’t want to prosecute the line of thinking I was heading down. It was super clear they thought I was leading them down a dead-end and the conversation wasn’t worth their time.
The “Actually” Avalanche
Just about every sentence from this Founder started with “Actually”. It was like they were allergic to the possibility that I might have a useful insight into their business (imagine that!).
The Market Feedback Resistance
The Founder’s vision was incredibly sharp but it became clear that the in-market results left room to question whether the vision needed adjusting. His reaction when asked about how the plans and vision should be modified based on real world feedback was incredibly defensive. It was clear that he’d rather go down with the ship than admit that his vision needed adjusting.
These types of Founders typically end up making big mistakes that shrink their odds of success. A few examples:
Blindspots
These Founders are so busy listening to their own internal dialogue that they miss the forest for the trees. They’re like a driver so focused on proving they know the best route that they miss the “Bridge Out Ahead” sign.
Team Toxicity
Nothing kills team morale faster than a know-it-all leader. Good luck attracting and retaining top talent when the Founder’s ego is sucking all the oxygen out of the room.
Missed Opportunities
Agility is critical given how fast things change and how much is being learned every day in the life of a startup. Know-it-all Founders miss pivotal opportunities because they’re too busy defending their original vision to see new gold mines that reveal themselves.
What Founders need to realize is that being right isn’t nearly as important as being successful. The most effective Founders aren’t those who never make mistakes. Successful Founders are the ones who fall in love with the problem they’re trying to solve but NOT with the solution they’ve personally been chasing. Great Founders can admit when they’re wrong, learn from market feedback, listen to Advisors and pivot when it’s appropriate.
So, if you always “Need to be Right”, it might be time to internalize the damage that comes with this trait. You might struggle to fund your business. You might struggle to hire talent. You might struggle to navigate market forces and consumer behaviors. You might just struggle. Remember, you don’t want to be like the Titanic – Impressive on paper but destined to sink when it hits the iceberg of reality.
