The 2010s was the decade of the Entrepreneur. The 2020s will be the decade of the Investor.
“Let go. Create space. Things happen”
John Purkiss
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The triviality scale
Founders of high-growth startups are operating in high-stress, high-stakes environments — as I’ve written about before the ‘guaranteed result is that at some point they will want to give up’. But what might it be that’ll actually make them give up? If they do, will you think that they quit too early over something relatively trivial?
Naturally founders can have very different perspectives on what constitutes a ‘trivial’ issue versus something more serious, but does it matter? And if it does what might you conclude?
I think that by examining a founder's view of their ‘triviality scale’ it can provide valuable insights for angel investors evaluating their chances of success.
How about this Triviality Scale?
Running late for a meeting.
A minor customer complaint.
A product feature delay.
A small unpaid invoice (or a big one — where does the founder draw the line?).
Missing an important deadline.
Receiving a cease and desist letter.
Being sued.
Facing regulatory or legal action that threatens the business.
If a founder blows their top at a minor customer complaint is that because they care about the details or because they are overreacting?
If they’re all cool and collected about being receiving a cease and desist letter does that mean they’re not taking the business seriously or are they the next Zuck being threatened by the Winklevii?
Reaction & response
As an angel investor, paying close attention to how a founder navigates and responds to their triviality scale can provide invaluable insights. It's a window into their leadership abilities, stress management, problem-solving skills and resilience — all critical factors in determining whether a founder has what it takes to weather the inevitable storms ahead.
How can you examine this though? Asking the founder how they’d theoretically react to the above list may not be what happens in real life. And what if they have three or four of those happening at the same time?
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