The Brilliance in “Bad” Ideas?

The best ideas often look like… really bad ideas. But this makes perfect sense– if the ideas were so obviously good, big companies with the money and the manpower would just do it themselves. If breakthrough ideas were obviously good, the opportunity wouldn’t exist.

Seek out founders who excite and energize you because they’re smarter than you! If you meet with a founder and think that you could easily do what they’re doing, don’t invest. You should sense that the founder has an expert-level understanding of the market and their place in it.

Truly driven founders aren’t derailed by roadblocks– insane ambition is a promising sign that a founder will do big things.

If a founder can simply explain a complicated, technical idea, it reflects a mastery of the topic. It also suggests a founder will be able to advocate for, or evangelize, their product with ease.

Don’t cancel meetings with founders –it’s disrespectful to the founder and will damage your investor rep. Of course, you also might be missing out on a huge investment opportunity.

When you feel solid in your decision to invest in a company, seal the deal ASAP! You will miss amazing opportunities if you drag your feet. Plus, companies that you are able to string along have much less potential to be the next massive success.

While a bargain is always tempting, you’ll hardly ever see a return on value purchases. Value investing seems like it should work but it’s a mistake more often than not.

If you are really excited about a company but taken aback by the price, don’t immediately write them off. The price may be high for a good reason and it isn’t a reason to discount a startup you’re floored by.

Say what you will about the world of returns, but it seems to encourage optimism; it’s often more profitable to invest in the future you hope to see rather than the one you fear. Keep your cynicism at bay when investing.

Market size, current monthly revenue, and celebrity endorsements mean zilch without a superb founder and team. A top-notch founder is able to communicate clearly and concisely. They execute quickly and accomplish a lot with a little. They bring new meaning to the word “ambitious” and seem to churn out ideas nonstop. They attract the best talent and their product is something people really want. Lastly, they are fearsomely determined and committed to seeing their venture thrive.