/

Business Angels: How to invest in a billion-dollar CEO

You don't invest in a billion-dollar company; you invest in a billion-dollar CEO. In the beginning, there is almost nothing except an idea, a nascent company, and what matters most is the quality of the CEO and the co-founders. I have invested in companies with CEOs of very different profiles, and ultimately, today, nothing allows me to guarantee at the time of investment that there is ONE typical profile that succeeds more than others. It is still important to know how to differentiate them and to recognize certain qualities that make a good CEO. Here are some tips on how to know which CEO to invest in!

‍

Knowing how to differentiate a CEO's qualities 

I have invested in the charismatic CEO, the highly experienced CEO, the one who had the right idea but lacked execution skills, the poor manager, the one who develops but knows neither how to recruit nor manage, the very humble and discreet CEO who turns out to be an execution machine, the CEO who cannot make difficult decisions, the one who takes a shot and gives up quickly if the company doesn't take off, and the CEO who had never started a company and will likely build a unicorn. There is no doubt that a curious CEO who has the trust of their team, knows how to delegate, and creates a real company culture (i.e., a good leader) already has a better chance of succeeding. If you add to that their ability to have and communicate a vision, and to listen to and invest in their teams, you are not far from the qualities of a true leader. If they are also a serial entrepreneur, that’s the icing on the cake! But it is, of course, very rare to have all these qualities. Some experienced BAs only invest in CEOs who have already proven themselves. In my case, my best exits were with first-time entrepreneurs, even though that is not necessarily the norm and the ideal is to have a mix of entrepreneurs with different experiences.

‍

How to evaluate a good team? 

I’m going to share some of the questions I like to ask to evaluate a team:

- How did you meet? How are tasks divided among you?

- Have you started companies together before? If so, why do you think you succeeded or failed? If not, why did you choose each other?

- Why are you the best team to solve the problem you are addressing?

- Why did you decide to tackle this subject, and why now?

- What would cause your startup to fail?

- What is your current revenue?

- At what price would you be willing to sell your startup if the opportunity arose?

- What type of leader are you?

‍

There are obviously many other questions... At Super Capital, we ask them for you! We have a community of Business Angels to whom we send quality deal flow. Don't hesitate to contact us ! (: