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Q

Lots of people talk about how investors evaluate startups (I'd love to hear what you look at specifically) but I don't hear a lot of people talk about how investors evaluate ENTREPRENEURS behind the startup. What do you look for (if anything) in founders that you may invest in? What are the red flags or what's attractive?

When evaluating entrepreneurs, VCs do two things:

1) they spend time with them and get to know them. Sure, some of it is a gut feel. Do you like the person? Do you think they are smart? But the real thing that happens is you find out a lot about how they think about the business and company building. You learn how they address problems. You learn about how they think about competition, etc.

2) they call the people with whom you’ve worked before (in VC speak, we do diligence on the entrepreneurs). It is one thing to think someone is smart and thoughtful. It is another thing to hear from her past board member that she is really thoughtful and smart. That goes a long way. So I talk with tons of people you know to find out as much as possible about you.

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