6 Characteristics that Investors Look for in an Entrepreneur

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By Mark Di Vincenzo

The legendary football coach Vince Lombardi said, “Leaders are not born, they're made.”

Angel investors don’t care. When angels are evaluating the founder of a company that intrigues them, they just want to know if the leader is actually a leader.

How can they tell? Here are six personality traits that any angel should want to see in every entrepreneur:

Bold
Entrepreneurs must take calculated risks. They must not be afraid to ask for what they need. They must be assertive. Angels need to ask the right questions to determine whether the founder is bold because he’ll need that trait to turn a promising business into a big business.
Calm
Business leaders need to keep their cool because it rarely makes sense to panic/scream/cry/pout/jump up and down when things go wrong – and they can go wrong a lot. Angels want to invest in companies run by founders who can push aside difficulties without anger and find solutions. Unfortunately, entrepreneurs typically are on their best behavior when they’re talking with angels, so angels may need to talk with others to get a sense for whether the founders possess this trait.
Detail oriented
Attention to detail helps an entrepreneur reduce costs, create and grow a brand and stay ahead of its competitors. Apple co-founder Steve Jobs was known for his vision, but his attention to detail in every facet of the business also helps explain Apple’s success. Jobs never stopped caring about the tiniest of details. After a business grows, a founder can hire others to also manage the details, but he should never stop caring about them.
Disciplined
No entrepreneur can succeed without discipline. To start with a single idea and turn it into a great business, founders must have discipline. Some businesses fail because the founder just doesn’t have it. Angels should ask founders to describe their average day. If it includes tennis and golf and breaks to take the kids to school and pick them up afterward, they may not be the one to lead their companies to greatness.
Passionate
Dallas Mavericks owner Mark Cuban, who founded and sold MicroSolutions and Broadcast.com, said no one should start a business unless he is passionate about it. Passion is contagious and when entrepreneurs have it, they can inspire their employees to run through a brick wall for them. That passion is the fuel that enables founders to work 14-hour days, care about the little details and take calculated risks.
Visionary
It goes without saying that entrepreneurs must have a vision. They also must be able to communicate it so their employees are more likely to follow them and be able to communicate it to others. Angels need to ask founders to communicate their vision. See if the founders can paint a picture with words. If they can’t get you excited, they may have a vision problem.

As Lombardi said, the traits that make a leader often are learned. Angels need to make sure founders have learned them.