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VC Galaxy

Seed Investing Is a People Business: The Most Important Bet You'll Make as an Early-Stage Investor

December 15, 2024
4 min

Our team has worked with some of the best seed investors in the industry (and we don’t say this lightly, think investors who spotted the 100x outliers).

One trend emerges time and time again among the most successful: their unwavering focus on founders.

Here’s 3 things we’ve observed:

  • The best focus on founders.
  • The good focus on markets.
  • The worst focus on products.

This hierarchy isn’t arbitrary; it reflects a critical truth about the seed stage. Markets change. Products evolve. But founders—those with vision, resilience, and the capacity to adapt—are the constant driving force behind lasting success.

Seed Investing: A People Business

Seed investing has always been, and will always be, a people business. Early-stage startups face uncertainty at every turn. Markets may pivot unexpectedly, and initial product ideas may shift entirely. In these moments, it’s the founders—creative, determined, and adaptable—who navigate through the chaos and forge paths to success.

As a seed investor, your belief in founders can be transformative. It’s not just about the capital you provide; it’s about the conviction you show. That belief gives founders the confidence to take risks, adapt to challenges, and persist when the odds seem insurmountable.

Why Focusing on Founders Wins Every Time

1. Founders Adapt to Market Shifts

Markets are rarely static. Even the most thorough market research can become obsolete in the face of new trends or unforeseen events. Founders who are resourceful and open to learning can pivot to seize emerging opportunities.

2. Great Founders Create Great Products

At the seed stage, products are often rudimentary and far from their final form. It’s the founders’ vision and execution that shape products into something meaningful and market-ready.

3. Belief Fuels Momentum

The early days of a startup can be lonely and challenging. Founders who feel their investors truly believe in them are more likely to persevere and build something extraordinary.

Seed Investors: Be the Believer

As seed investors, the most valuable thing you can give a founder isn’t just your capital—it’s your belief. When you choose to invest in a person rather than a product or a market, you’re betting on their ability to navigate the unpredictable and emerge stronger.

Markets will shift. Products will evolve. Founders, however, remain the constant driving force. Focus on the people, and you’ll not only maximize your returns but also build relationships that define your legacy as a seed investor.

Seed investing isn’t about picking the perfect product—it’s about believing in the imperfect but brilliant founders who can make it happen.

PS:

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