Do You Meet This VC Standard? The Importance of Motivation
Written on
Understanding VC Expectations
Venture capitalists are often on the lookout for a specific quality in founders: the purity of their motivation. This was highlighted in a conversation I had with a friend who has an impressive track record in angel investing. We discussed our experiences in the investment landscape, focusing on the key takeaways from both our successes and failures.
When I probed deeper into his insights, he emphasized that while he values skills and instincts, he also seeks to understand the underlying reasons for a founder's commitment to their startup. When he encounters a founder with exceptional abilities who is also deeply connected to their venture, it piques his interest.
The concept he refers to aligns closely with what I often describe to founders. It’s something that top investors actively seek out, and they even have a term for it.
What Does "Purity of Motivation" Mean?
Although I cherish coining phrases, I can't take credit for this one. I first encountered "purity of motivation" from Sarra Zayani, a partner at Hedosophia, during a fireside chat we held for founders. Sarra’s key point was that if she doesn’t perceive a compelling reason for someone to pursue their startup—one strong enough to divert them from more lucrative options and sustain their drive through challenges—then she loses interest.
Experienced investors have observed enough patterns to recognize that some impressive resumes may falter when the rewards diminish. Conversely, they also understand that individuals who may not have the typical background but possess the right motivation can achieve remarkable outcomes.
Assessing Your Purity of Motivation
Many people mistakenly equate purity of motivation with an intense dedication to social causes or personal experiences that have shaped them. While these elements can indeed foster such motivation, they aren’t the only sources. On the flip side, some individuals genuinely enjoy the business landscape. They thrive on solving problems and would engage in the work even if it didn’t pay.
To help you evaluate your own purity of motivation, consider these five questions:
- What drives you to pursue this venture?
- Why does this matter to you?
- What makes it significant?
- Why is that the case?
- Why?
This approach is reminiscent of Toyota’s method for uncovering root causes. I find it useful for helping founders critically assess their connection to their business. If you don’t discover a compelling reason by the fifth question that ignites your passion, it may not only be challenging to commit to the rigorous demands of seeking venture capital, but it will also likely hinder your ability to persuade investors. They are searching for that compelling 'why'—the essence of purity in motivation.
Why Are You Committed to Your Company?
For additional tools and resources, visit StartupStash.
Zendesk is offering $75,000 in credits and perks for startups! Apply now!
Hungry for more insights on fundraising?
→ Join our exclusive rewards for Fundraising Fieldnotes subscribers.
→ Enroll in our Self-Paced Fundraising Course.
→ Explore our Investor Outreach/Research Service.
→ Discover our Pitch Deck Design Service.