I missed a $40 billion opportunity because I ignored a simple truth: everything comes down to the founder. This is my biggest lesson in 4 years angel investing. *Missing a $40 Billion Opportunity* Two years ago, I had the opportunity to invest in the seed round of Figure, the robotics startup. I found the company really intriguing. I couldn’t stop thinking about it and telling folks about their cool androids. I also knew the founder had started a billion dollar company before (Archer Aviation). But Figure’s valuation was high. I was concerned there wouldn’t be enough upside. And it was robotics, something I don’t know much about. Full of doubts and second guesses, I passed on the investment. Fast forward two years, and Figure is valued at $40 billion. I missed one of the biggest opportunities of my career. All that stuff I was worried about? Turned out none of it mattered. All that mattered was that Brett Adcock is exceptional. *How I Invest Now* When I looked at decks a few years ago, I’d flip straight to traction. Now, I flip straight to the team slide. I scrutinize the founders’ backgrounds. Have they done anything exceptional in the past? Startups are a lot like grade school. What’s the best predictor of who will get A’s this year? Who got A’s last year! Successful people keep succeeding. I’m not saying that only founders with incredible track records are worth investing in. Nobody knew who Brian Chesky and Joe Gebbia were when they started Airbnb. I’m excited about investing in the unknown founders too. But founders with a strong track record go to the top of my list. *Wrap-Up* It’s so easy to get lost in metrics and analysis. CAC, ROIC, TAM, you name it. Here’s my best advice to new angels: you must know the details, but you don’t want to get lost in them. Focus on the founder above all else. In the end, every company boils down to a human being trying to achieve a goal. If that human is exceptional, nothing else matters. | 180 comments on LinkedIn

Everyone wants to be a VC. Nobody wants to do what it takes. You’re not picking startups. You’re picking founders. Which means your job is 50% judgment, 30% psychology, 15% damage control, and 5% spreadsheets. No one tells you: You’ll hear 99 polished decks before finding 1 honest founder. You’ll watch “sure bets” fizzle while that scrappy kid from Nagpur builds a $20M ARR product on WhatsApp. You’ll say no to a pitch at 3 PM and see it close a Tiger round at 6 PM. It’s not just a hard job. It’s a lonely one. Because when you get it right? The founder gets the glory. When you get it wrong? The LPs ask questions. This isn’t Shark Tank. It’s Survivor—blindfolded, with no map, and 10 other VCs with deeper pockets. So if you want to be a VC, ask yourself: Do you want to be right? Or do you want to be useful? Because the best ones don’t chase unicorns. They back people before the world believes in them. #venturecapital #founders #startups #penmentor | 28 comments on LinkedIn