Watch: What should a Founder look for in an Investor?

Insights

What should founders look for in an investor? Learn why alignment, terms, and long-term fit matter more than you think for startup success.

Finding the right investor means prioritising alignment, great terms, and long-term partnership potential.

1:53 mins

Key Insights

  • Alignment between investors and founders often determines success more than market fit alone.
  • Strong investor networks can unlock social capital and connections that create meaningful value.
  • The best investment relationships balance great terms with genuine belief in the founder’s mission.

Video Transcript

What should a Founder look for in an Investor?

Kate Coffey, Investment Manager, AirTree
I think the key thing a founder should look for is great terms for you and your team. Um the second thing is that this is going to be a long-term relationship. So is this someone that you can work with that you see yourself aligned with in the long term?

Noel Paul, Director, Investments, Breakthrough Victoria
If you look at your investors and the founders that they’ve backed and the successes that those founders have had, you’ll able to pinpoint the social capital and or the network of investors that your prospective investor will have access to. And this will create a whole different level of value for your business.

Paul Naphtali, Cofounder & Managing Partner, Rampersand
An alignment between that investor, their time horizon, their objectives from the investment, and the kind of business that you’re trying to grow. There’s more often than not, unfortunately, in my 30 years in startups and technology, I’ve seen companies fail because of misalignment between investors and founders or between different investors than it is a problem with the market not being there for the for the solution that you’re offering. So, really solve for alignment from the get-go.

Rachel Yang, Partner, Giant Leap
So, a founder should really be looking for an investor that understands their why, that understands the mission behind the business, and really wants to back them on that journey. An investor that really believes in their ability to achieve their goals and that they can have a win-win by growing the business and achieving success for both the investor and the founder.

Ben Armstrong, Managing Partner, Archangel
You need to be able to work with them because you will be working with them for a long time. Doesn’t mean you have to love them, but it does mean you have to like them enough that you feel that you can spend a lot of time through, you know, adversity, etc., and they’re going to be on your side and help you on that journey.

Thea Ngo, Investment Analyst, Archangel Ventures
The main thing to look for is alignment. So, this is alignment in terms of the size you’re going to get as well as the type of business that you want to run.

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