Startup Therapy

Why Do VCs Keep Giving "failed" Founders Money?

02.26.2024 - By Startups.comPlay

Download our free app to listen on your phone

Download on the App StoreGet it on Google Play

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.

Sign up for the Startups Newsletter https://www.startups.com/newsletter

Resources:Startup Therapy Podcast https://www.startups.com/beginJoin our Network of Top Founders Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For00:00 Intro01:03 Why giving people a second chance is the best investment02:29 Redefining failure04:59 “One failure doesn’t make the person a failure…”09:30 If you’re making mistakes, you’re also learning10:05 Spotlight on failure13:59 The value of experience16:49 Before the failure, there was a success20:33 Trust and familiarity in investor-founder relationships23:21 Challenge of investor decision-making27:14 Focusing on building relationships30:42 Investing in the founder’s mindset rather than ideas

More episodes from Startup Therapy