Investing in startups is often portrayed as a thrilling ride through the cutting-edge of innovation. But here’s a truth that doesn’t make the headlines quite as often: I’m more interested in the founders than their startups. This might sound counterintuitive, especially in a world where the product often takes center stage. Yet, it’s the entrepreneurs behind the scenes who truly captivate my attention.
Let me share a story from my own experience. Not too long ago, I was approached by a vibrant young team with an innovative idea in the fintech space. The concept was bold and had all the makings of a potential success story. Yet, what drew me in wasn’t the idea itself, but the founders’ response to a critical question I asked during our discussion: “What will you do if this doesn’t work?” Their answer revealed not just resilience but a depth of understanding about the nature of failure and adaptability. It mirrored a sentiment I’ve long held — that startups need to embrace failure as part of their DNA.
It’s moments like these that remind me of the lessons I’ve learned from my medical practice, particularly in IVF. As an IVF specialist, I’ve seen firsthand how patients cope with the uncertainties and emotional rollercoasters of fertility treatments. It takes resilience, patience, and an unwavering commitment to keep trying against the odds. These are precisely the qualities I look for in founders. A founder who can navigate the emotional and psychological turbulence of a startup journey is much more likely to succeed in the long run.
The parallels between my medical practice and angel investing are striking. In both fields, it’s not just about technical expertise but about the human element. Just as fertility treatments demand more than just medical expertise, startups need more than just a groundbreaking idea. They need founders who can pivot, adapt, and persevere. This is why I see more potential in first-time founders. Their fresh perspective, untainted by past failures, often leads to a level of creativity and determination that seasoned entrepreneurs might lack.
Let’s talk about numbers for a moment. In my experience, about 70% of the startups I consider investing in have some form of product-market fit. However, only a fraction of these will succeed in scaling. The differentiator is often the founder’s ability to learn and adapt. A strong founding team understands that the startup journey is less about executing a perfect plan and more about responding to the unpredictable. This adaptability is crucial, especially in the volatile Indian startup ecosystem, where market conditions can change rapidly.
But what about those founders who have already faced failure? Interestingly, they often possess a unique advantage. They’ve been through the grind, faced setbacks, and emerged with invaluable lessons. This is why I encourage founders not to shy away from their failures but to wear them as badges of honor. After all, a failed startup is not an end but a stepping stone to success. This mindset shift is essential, and it’s something I actively look for when evaluating potential investments.
In the realm of venture capital, there’s an interesting phenomenon: successful founders who transition into VCs tend to outperform their peers. This is because they’ve walked the path themselves and understand the nuances that can’t be captured in a business plan or pitch deck. They bring a level of empathy and insight that is often missing in traditional VC circles. This is why, when I invest, I don’t just provide capital; I offer mentorship and guidance based on my own journey. It’s about building a relationship that extends beyond financial transactions.
I’ve backed founders who, on paper, might not seem like the most obvious candidates for success. Yet, their stories, their grit, and their ability to look beyond immediate setbacks have been far more telling. It’s this human element that often goes unnoticed in the conventional metrics of startup evaluation. While traditional wisdom might focus on market size, competitive advantage, or scalability, I prioritize the stories behind the numbers.
There is, of course, an element of risk in this approach. Betting on people means embracing uncertainty. Not every founder will rise to the occasion, and not every startup will succeed. Yet, in my view, the potential rewards — both financial and personal — far outweigh the risks. Investing in people means investing in potential, in dreams, and in the possibility of meaningful change. It’s about contributing to a narrative that extends beyond the balance sheet.
As I reflect on my journey, both as a doctor and an investor, I’ve come to realize that the real value lies in the connections we forge. Whether it’s guiding a patient through the complexities of IVF or supporting a founder in their entrepreneurial journey, the human connection is what drives me. It’s what keeps me invested in both my patients and the startups I support.
So, here’s my advice to fellow investors: Look beyond the pitch decks and business models. Engage with the founders. Understand their motivations, their fears, and their aspirations. It’s in these conversations that you’ll find the true potential. After all, the greatest innovations are not born out of products but out of the relentless pursuit of individuals who dare to dream and strive against the odds.
In the end, investing in founders is not just about financial returns but about being part of a story that has the potential to reshape industries and impact lives. It’s about believing in people, in their capacity to innovate, and in their resilience to overcome challenges. And that, to me, is the most rewarding investment of all.