Unveiling the Art of Investor Selection: A Guide for Entrepreneurs

By Tim Draper, the visionary investor who backed Tesla, Skype, Path, Box, and Baidu

6/27/20231 min read

a man in a suit and tie is shown in this infographic
a man in a suit and tie is shown in this infographic

Tim Draper's investments have surpassed the impressive count of 400 companies.

He evaluates startups based on three pivotal factors:

🔹 Exhibit a Promising Opportunity: How vast is your target market? Aim for the stars, as Tim Draper desires to venture into substantial markets. Take, for instance, Baidu, whose market encompasses one-sixth of the world's population.

🔹 Embrace Self-Awareness: Comprehend your true strengths and weaknesses. Tim Draper seeks individuals who possess an acute understanding of their abilities, along with an awareness of areas where they may fall short. Aim to excel significantly in one particular area, outshining all competition.

🔹 Master the Art of Partnerships and Traction: Become a relentless hustler, employing any means necessary to forge alliances and gain traction. Tim Draper urges you to harness the power of viral marketing, magnetic influence, or any other resource available to you.

Now, let's delve into Y Combinator's Partner Kevin Hale's methodology for selecting founders:

🔸 He favors Exceptional Storytellers: Possess the ability to captivate investors by skillfully elucidating your business and its purpose. The power to convey the essence of your product to consumers and the wider market is equally vital.

🔸 He invests in Founders with Unwavering Belief: Kevin Hale seeks entrepreneurs who wholeheartedly believe in themselves, their team, their product, and their strategy. Additionally, provide tangible evidence that supports your capability to transform your product and vision into a reality.

Incorporate these five fundamental attributes, as advocated by Tim Draper and Kevin Hale, and enhance your chances of securing funding for your startup.

Do you have any additional tips for founders seeking to raise funds? 💭

#venturecapital #founders #startups #fundraising