When it comes to pitching to investors, founders typically focus on their pitch decks, business models and financial projections. While these elements are crucial, venture capitalists (VCs) are increasingly placing equal, if not greater, emphasis on something else: the founders themselves.
This is where the ‘Founder’s Test’ comes in. An informal but critical framework investors use to assess whether a founder is worth backing, not just financially, but as a long-term business partner.
“Most entrepreneurs are very focused on working in their business and not necessarily on their business. By putting more attention on themselves and the overall direction of the company, they can increase investor confidence,” says Grindstone Ventures CEO Thandiwe Maqetuka.
What do Venture Capitalists Look for in Founders?
Beyond evaluating product-market fit, total addressable market, or projected returns, investors pay close attention to the persona behind the business. As industries evolve and competition intensifies, VCs are prioritising founders who demonstrate two standout traits:
Courage and resilience - The ability to keep going when things fall apart and lead under pressure.
Genius – Not just being smart, but having a distinct and original way of thinking.
These qualities are especially valuable in emerging markets like Africa, where volatility is a constant. Founders who’ve weathered economic and operational storms are often seen as more bankable.
Traits That Make Founders Investable for VCs
VCs tend to apply a broader lens when assessing founders. In reality, early-stage investments are largely about people, not just ideas. These are people who can execute, adapt and scale under pressure and changing economic conditions.
Coachability is another critical trait. Investors aren’t looking for lone heroes, they’re looking for partners. A founder who believes they have all the answers is unlikely to progress beyond the first meeting.
Additionally, investors want to see that founders have vision. This means having more than just a big idea, but being able to articulate where the business will go and how it will get there. This vision must be coupled with operational discipline, a trait which is evident in founders who make smart decisions (quickly), hire the right people and build lean operations. Founders who can marry their vision with execution will always stand out.
What Is the 'Founder’s Test' and Why It Matters to Investors
According to Matequka, many founders miss out on funding simply because they fail the initial ‘gut check’.
“First impressions do make a difference. And if you don’t make a strong one, we often don’t want to go any further,” she says.
VCs evaluate everything in the initial meeting: communication style, subject-matter knowledge, authenticity, and composure under pressure. While confidence definitely matters, arrogance is a red flag. Investors are looking for clarity, emotional intelligence, and strong understanding of the business’ fundamentals.
Key Factors VCs Use to Assess Startup Founders
Investors will often assess founders using a layered, informal framework. While each firm has a different approach, most will evaluate founders across three key dimensions:
First Impressions Matter
Investors form their initial opinions fast, usually within the first five minutes of a meeting, in some cases. Body language, how a founder tells their story, their grasp of the business, all of these create a perception of readiness (or lack thereof).
Founder-Market Fit
Successful founders are those with lived experience or deep insight into the market they want to capture. They tend to have more credible, scalable strategies and are consistently talking to users, refining their messaging and developing based on real feedback.
This sort of mentality is important in sectors like fintech where customer and cultural nuance play a major role.
Long-term Alignment
When VCs commit to multi-year partnerships, they’re committing to working with a founder for the next 7 to 10 years, someone whose values align with theirs and someone who understands the pressure and accountability that comes with investors backing. This is where traits like resilience play a key role in investor confidence.
Passing the test is not just about ticking boxes. You have to demonstrate intentionality, value for investors and clarity in your purpose.
How African VCs Are Rethinking Startup Innovation
While buzzwords like deep tech, artificial intelligence (AI) and machine learning continue to grow, African investors are rethinking their definition of innovation. For them, innovation must be scalable, accessible and grounded in reality.
A standout example is Chicken Bar, founded by Asanda Maqabuka, the first participant of the Grindstone Ventures and the Mineworkers Investment Company (MIC) Female Founders programme. Operating in a market dominated by giants like KFC and Nando’s, Chicken Bar differentiates itself through a clever model: using shipping containers as modular store units, making it cost-effective and easy to scale.
“We saw the innovation behind Chicken Bar. We assessed the market and realised there was space for a player like Chicken Bar. Its model is cost-effective and highly scalable," said Maqetuka.
This shift towards contextual innovation highlights the value of systems thinking, a mindset where founders focus not just on products, but also on distribution, localisation, infrastructure realities, and user experience. Founders who understand the systemic nature of innovation signal a higher level of business maturity.
Why Coachability Matters to Investors
Another core element of the ‘Founder’s Test’ is willingness to learn. This trait becomes particularly relevant in Africa, where VCs often provide hands-on developmental support, such as:
Founders who embrace this support and show adaptability are viewed more favourably. Coachability isn't about blind obedience, it’s about humility, openness, and execution.
The Coachability Factor in Action
How a founder responds to constructive criticism can reveal a lot to a potential investor. Coachability is the willingness of the founder to take action, reflect and put faith into the process. Investors want to see founders who see advice not as a challenge to their authority, but as a lever for growth. Those who adapt quickly and confidently are more likely to secure long-term support.
For every successful funding story, there are many founders who never made it past the first investor meeting, not because their idea was weak, but because the presentation, preparedness, or mindset didn’t meet the mark.
Poor preparation - Not knowing important financial metrics, customer acquisition costs, churn rates or governance structures.
Overconfidence - Coming across as arrogant, dismissing feedback or being adamant that you can do it on your own.
Lack of clarity - Sometimes overthinking and struggling to explain the business model or growth strategy can make you come across as incoherent.
Defensiveness - Reacting poorly to difficult questions or critical feedback reduces investor confidence.
Even subtle signals like contradicting oneself during a pitch or speaking negatively about competitors can influence investor perception. Founders should remember: the pitch is not just about impressing, it's also about establishing trust.
How to Prepare to for the 'Founder’s Test'
Passing the ‘Founder’s Test’ is not about having all the answers, it’s about being prepared, honest, and strategic. Founders should do the following:
Practice their investor narrative and explain why this idea, why now and why you want them to back you.
Prepare for tough questions and welcome them as signs of genuine interest.
Know their numbers and their market thoroughly.
Always ask for feedback and revise your pitch or business accordingly.
Why VCs Back Founders, Not Just Startups
Ultimately, VCs aren’t just evaluating a business plan. They’re deciding whether to back a person who can build, adapt and lead over the long term.
Founders who understand this and who approach fundraising with transparency, humility and strategic intent, are the ones most likely to pass the ‘Founder’s Test’. And in the current market climate, passing that test might just be your biggest competitive advantage.
Lungile is the Digital Editor for Startup.Africa, with a knack for storytelling, technology and innovative ideas. Working with Startup.Africa, she takes simple ideas and turns them into amazing stories.
Lungile Msomi
