While the track record of the team and the firm’s advisors are very important, investors usually first focus on the Founder of the firm or the CEO.
In general, investors look for CEOs who:
- Has “been there and done that”;
- Has specific domain experience/expertise;
- Is aware of his knowledge gaps and actively seeking resources to fill them;
- Is capable of attracting, hiring, and managing top talents;
- Demonstrates a powerful sense of ambition or determination;
- Shows a tendency of under commit and over deliver;
- Understands the distinction between being employed and being an employer;
- Recognizes the need of generating revenue while keeping the burn rate to a minimum.
In particular, investors look for CEOs with the following characteristic:
- A charismatic communicator capable of conveying the firm’s value propositions and attracting top talents;
- A superb dealmaker that able to close big deals;
- Have a high personal energy level and a strong desire to achieve goals and motivate others to accomplish above and beyond;
Investors are more inclined to invest in someone who has a track record of doing the most of what they are expected to do in the future.
It is crucial that you assess yourself as a CEO against the criteria given above, so that you can strengthen the areas that may otherwise be your roadblocks to successful capital raising.