Choosing whether or not to invest in a founder is never an easy task for an investor. With so many founders vying for their time and so many unknowns, a lot of it comes down to luck and instinct. When I was still investing at Octopus, a significant part of my job was determining if a founder was the right fit for our fund.

We knew they didn't have to be perfect. In fact, none of the founders my fund invested in were perfect. Neither are the founders, who I've helped raise over $200 million for, are perfect. However, every founder had one thing in common - they knew what they excelled at and were able to demonstrate this to investors.

One mistake I see many founders make is you not taking the time to assess your own strengths and weaknesses. Without knowing where you excel, you cannot confidently communicate your strengths. Without knowing where you need work on, you cannot allocate resources to improve your weaknesses (something investors appreciate, by the way).

This is why it's crucial to dedicate time to understanding what makes you a great founder. I believe being a great founder can be categorized into six areas. Take the time to reflect on where your strengths lie in each section and develop action plans, stories, or examples that illustrate your proficiency or areas for improvement.

The six components of being a great founder are:

1. Product Vision and Innovation

The product is the core of any tech startup. A successful tech founder should not only possess an appealing product, but also have a clear vision for it. This involves understanding market needs, anticipating future trends, and continuously innovating through a deep understanding of their customers. An investor has to believe you will reach product-market-fit.

I vividly recall numerous occasions when I sat in investment committee meetings discussing a founder's passion and skill in product development. Investors are attracted to founders who are passionate about their product and have a roadmap for its growth. Of course, it is crucial to articulate how the product solves a real-world problem and its potential for scalability, but it is also about demonstrating that you will create the best product through your skills, actions, or sheer determination.

2. Sales Acumen and Persuasiveness

One of the most common failures I have observed with founders is their complete inability to effectively sell their own products. If you cannot convincingly explain the value your product brings to customers, it is difficult to have confidence in your ability to do so with actual customers.

Great founders possess a natural talent for persuading others with clarity, enthusiasm, and authenticity. That is why it is crucial to begin with founder-led sales. We need to see that you have been actively involved in the sales process and can sell your product as effectively as anyone else.

3. Domain Expertise

Hopefully this one is self-explanatory but you need to show investors that you have deep domain expertise in your industry. I’m not even talking about experience here, it doesn’t have to be measured in years.

Some of the best founders I ever met and invested into weren’t in the industry for decades. E.g Yusuf from Quit Genius started his business straight out of university. Domain expertise is more about your unique insights - showing why you have them, convincing the investor you are right about them, and why those insights will mean you will succeed.

4. Building a Strong Team

At the heart of your start-up will always be the people - you certainly can't do this alone.

I often emphasize the importance of the founder in a funding round because it's the only controllable aspect. The same can be said for the people you hire; they are the only controllable factor in your success. It all comes down to the people, and without the right individuals, you will inevitably fail.

Investors understand this deeply, and one of the initial topics we discuss is whether you can assemble a strong team. Building a strong team is a testament to a founder's leadership and vision.

A great founder recognizes their own strengths and weaknesses and brings together a team that complements them. This includes not only technical expertise but also skills in areas such as marketing, finance, and operations. A well-rounded, cohesive team instills confidence in investors regarding the startup's ability to execute its vision and outperform other teams in the industry.

5. Networking Prowess

Networking is a powerful tool for tech founders. By building relationships with other entrepreneurs, investors, and industry experts, you can access funding, mentorship, and strategic partnerships. Effective networking goes beyond attending events; it involves fostering genuine connections, sharing knowledge, and being open to learning from others.

This is why getting warm connections is so important to investors. If you couldn’t find someone to connect you to me from my vast network, what does that say about your own network? Will you be able to reach the right people to make sales? What about hiring? Without your network everything else in this list falls away. You can’t miss this.

6. Resilient and Adaptive Mindset

Lastly, the journey of a tech startup is filled with challenges and setbacks. A great founder is resilient, able to navigate through tough times, and learn from failures. They possess an adaptive mindset, ready to pivot when necessary and responsive to market feedback. Investors value founders who are not only dreamers but also doers - those who can persevere and adapt in the face of adversity.

In conclusion, while a great idea is the seed of a tech startup, it is the founder's qualities that nurture and grow this seed into a flourishing enterprise. If you are aspiring to raise capital from venture capital and angel firms must cultivate these six qualities to stand out and succeed - without these an investor will always reject you. It's a combination of passion for the product, salesmanship, domain expertise, team-building skills, networking ability, and a resilient mindset that will make you truly exceptional.

And you need to show investors you are exceptional if you want to get funding.