Why Do VCs Keep Giving "failed" Founders Money?

Why Do VCs Keep Giving "failed" Founders Money?

Author: Startups.com February 26, 2024 Duration: 33:42

In today's Startup Therapy Podcast, Wil and Ryan talks about why investors choose to invest on “failed” founders. They debunk the myth that failure marks the end of a founder's journey and shows why giving people a second chance is the best investment. Tune in as they explore the investor mindset, focusing on why they prefer to invest in founders who have shown they can bounce back and learn from failure, ultimately changing how we think about startup success.


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What to Listen For

  • 00:00 Intro
  • 01:03 Why giving people a second chance is the best investment
  • 02:29 Redefining failure
  • 04:59 “One failure doesn’t make the person a failure…”
  • 09:30 If you’re making mistakes, you’re also learning
  • 10:05 Spotlight on failure
  • 13:59 The value of experience
  • 16:49 Before the failure, there was a success
  • 20:33 Trust and familiarity in investor-founder relationships
  • 23:21 Challenge of investor decision-making
  • 27:14 Focusing on building relationships
  • 30:42 Investing in the founder’s mindset rather than ideas

Building a company is far more chaotic and personal than any business school case study lets on. Startup Therapy from Startups.com digs into that reality, moving past polished success stories to focus on the raw, unvarnished journey. Hosts Wil Schroter and Ryan Rutan, who have each navigated these trenches themselves, lead conversations that feel more like essential conversations between founders than a standard interview show. They tackle the specific pressures that come with trying to transform an idea into something meaningful-the financial strain, the team dynamics, the personal sacrifices, and the frequent moments of doubt that rarely make the keynote speech. This podcast operates on a simple premise: the best guidance comes from those who have been there, not from abstract theory. Each episode is a candid session, dissecting the professional hurdles and the intense emotional toll that founders manage daily. You’ll hear direct talk about fundraising fails, partnership conflicts, burnout, and the small victories that keep everything moving forward. It’s a resource for anyone in the thick of building something, offering practical perspectives and a sense of shared experience when the path gets especially tough. The dialogue is straightforward and focused on actionable insight, providing a genuine look at the resilience required to change the world, one startup at a time.
Author: Language: English Episodes: 100

Startup Therapy
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