Must-Read for Crypto Founders: VCs Care About More Than Just Your Project—They Care About You
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Must-Read for Crypto Founders: VCs Care About More Than Just Your Project—They Care About You
Show yourself, not just your company.
Navigating Web3 tides with focused insightsAuthor: Omri Drory
Translation: TechFlow
You've just finished a pitch and feel like you nailed it. You're feeling good.
But as you exit Zoom or walk out of the meeting room, you might wonder: What are investors really thinking right now?
Let’s pull back the curtain. The investors you pitched have just looked at each other for a moment. There's an intangible atmosphere in the air—one that usually leads to one of two outcomes:
Scenario 1: Overflowing enthusiasm, unstoppable momentum. We can't wait to start due diligence and are already ready to call partners to refer you.
Scenario 2: Awkward silence. Everyone shrugs, glances around, and a shared intuition arises—this probably isn’t the one.
We’re chasing Scenario 1—the kind of energy that makes this job exciting and keeps us listening through countless pitches. Unfortunately, it’s rare. If your pitch lands in Scenario 2, reversing course into Scenario 1 is extremely difficult.
First impressions matter far more than most realize.
Worse still, if you fall into “Scenario 2,” most venture capitalists won’t even tell you the real reason. The worst ones will string you along, waiting to see if another “top-tier VC” commits first, while giving you vague responses.
We’ve written before about what we truly care about when making investment decisions. The hardest feedback to deliver isn’t about technical uniqueness or market potential—it’s about the founder themselves.
Sometimes, the reason investors don’t back you is you—more precisely, the impression you leave.
This holds true even in biotech, where science and IP are critical. In software, it’s even more pronounced, given how often startups pivot.
Seed investing is fundamentally an investment in people. Investors need to believe you’re the person who can carry the company from seed stage all the way to a successful exit. This kind of feedback is tough to accept because it feels unchangeable.
I’m writing this because I believe that with the right perspective, there’s room for action. It would be a shame if, despite having great technology and a large market, you overlooked the fact that many VCs are subconsciously looking for certain “intangible qualities” during a pitch.
The Ideal Case
When investors are excited about a founder, they often use one word: “compelling.”
This is a crucial word.
Of course, it doesn’t help you much. How could you possibly know what any given VC finds compelling?
When most VCs say someone is compelling, what they mean is: I *have* to invest in this person—a gut-level feeling they recognize only when they experience it.
A close analogy might be the so-called “intangibles” in football. When evaluating potential NFL quarterbacks, scouts rate measurable traits like accuracy, footwork, and arm strength—but there’s also an unquantifiable quality. This “it factor” is a visceral sense of whether someone is a natural-born winner. It’s familiar—we’ve all felt it when Tom Brady or Patrick Mahomes trail late in the fourth quarter and we just *know* they’ll lead a game-winning drive.
Once you succeed, everyone says you had it all along. But the real challenge is convincing others you have that potential when you’re just starting out.
No one can draw a perfect blueprint of “founder qualities,” but the following elements may come close.
Quality 1: Unshakable Grit.
Starting a company is worth fighting for, but most of the time, it’s not easy.
In one sentence: Founders endure silent suffering.
Your health may suffer.
Your closest relationships may take a hit.
You’ll battle endless FOMO (fear of missing out) and imposter syndrome—why are others raising, hiring, growing, while you’re stuck?
Half the time, you’ll feel like you have no idea what you’re doing.
You’ll face predictable struggles, and completely unexpected ones.
When I was a CEO, in the darkest moments, I’d feel a deep, internal “clench of death.”
Read these words again, then reflect on your current life. Maybe you’re a postdoc, or have a stable job at Google or OpenAI—great pay, clear career path, social recognition.
Even so, do you still want to start a company?
Many first-time founders begin without truly understanding what entrepreneurship entails. NVIDIA’s Jensen Huang recently said he might not do it again if given the chance.
Once you’ve started a company, you’ll think twice before doing it again—which is why serial entrepreneurs typically only return for truly exceptional ideas.
For them, the biggest risk is “calling it rich”—when things get hard, they may ask: If I don’t need to do this anymore, why put myself through it?
Successful founders possess a special “magnetism” that convinces investors they’re strong enough to endure the journey. So before pitching a VC, look in the mirror: Do I really want this?
If you truly understand what lies ahead, convincing yourself should be harder than convincing investors. But if you’re fully committed, your conviction will show.
When your desire comes from deep within, it radiates outward. Which brings us to the next point…
Quality 2: A Must-Do Mindset.
Most exceptional founders don’t start companies because they “want” to—they do it because they “must.” It’s an inner drive, not a rational choice.
The term “wantrapreneur” exists to describe the opposite—someone who starts a company because it seems glamorous.
This inner drive shows up in daily habits and emotions. Even during “downtime,” you’re thinking about your startup. Your browser history is filled with company-related searches. Friends and family may find you annoying (see above: silent suffering). You’re deep inside the “idea maze,” living in the future—those visions feel as real as the present.
When I founded my first company, Genome Compiler, I was a postdoc at Stanford during biology’s digital shift. The thought of staying in academia, pipetting in a lab, made me feel suffocated. I *had* to be part of shaping tech-bio’s future—and I had an idea to help make it happen.
Then, a postdoc in the lab next door quit to start a company—my first realization that entrepreneurship was something I could actually do. From that moment, I knew I had to try.
The best founders see future possibilities. They feel anxiety because reality hasn’t caught up to their vision. In their minds, they’ve already mapped one—or several—paths to that future.
That’s why I say entrepreneurship is like a “wormhole” to an alternate reality. You must follow that wormhole to the future you’re creating for yourself and others.
If your desire is this strong, you’ll know it—and so will your investors.
Quality 3: Genuine Care for People and Purpose.
Most founders know about “founder-market fit”—whether your skills match the market. But I believe there’s a deeper layer: not just understanding the market, but genuinely caring about it.
Some people excel at jobs they don’t care about—it’s unfortunate, but real. But if you want to build a company, you can’t be one of them. You must deeply understand and care about the “why” behind your work. In biotech, this is especially evident—many enter the field to cure diseases affecting loved ones.
If you truly care, you’ll go the extra mile and outperform competitors. You’ll distinguish real breakthroughs from incremental progress. And frankly, if you care, you’ll find it fascinating.
This is actually the first step toward building a defensible company. If you care more than others, you’ll beat them.
As Naval Ravikant once said: You win by being authentic, not by competing.
But here, many lie—to themselves or investors. Maybe you can fool yourself (and your investors) for a few years. But over a 7–10 year partnership with a VC, you can’t fake it.
This obsession doesn’t fade. You accept that your company takes 100% of your attention—because it already occupies 100% of your mental space.
Don’t “fake it till you make it”—be the person who deserves success from the start.
Quality 4: You Are the Team’s Core.
One key to attracting investors is showing you can be a strong leader. We need to feel you’re the one we *must* back. We want to confidently refer you to other investors and feel proud associating with your company.
This magnetism is highly subjective and hard to codify. But I believe it stems from deep, multifaceted competence—balancing big-picture thinking with attention to detail.
You command the macro. You can step back and assess your pitch strategically—plan fundraising, craft business strategy, sustain operations, and drive product—all at once.
You master the micro. If someone emails you, you respond quickly with insightful, thorough answers—without getting lost in minutiae.
If you can do both, you’re not just visionary—you prove you can execute.
It’s like the quarterback in football. The QB is the team’s core—not only knowing where the ball should go, but having the skill to deliver it precisely—even with seconds left on the clock.
The Intangibles:
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Quality 1: Unshakable grit.
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Quality 2: A must-do mindset.
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Quality 3: Genuine care for people and purpose.
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Quality 4: You are the team’s “quarterback” (symbolizing leadership and holistic control).
Show Yourself, Not Just Your Company
If you have a clear mission, strong team, and solid tech… you’ll be surprised how easy fundraising can be. But if you overlook your own role in the story, you’ll hit roadblocks.
Many founders don’t realize: in a pitch, you’re not just selling the company—you’re selling yourself.
If you keep getting rejected—the issue may not be your idea, but how investors perceive *you*. This feedback is hard to hear, so few will say it outright. And not every investor is right. Different people will see you differently. You can’t please everyone—and that’s fine. Find the right backers, keep going.
But taking a moment to reframe your approach? That’s just seeing your pitch through a new lens.
Cultivate those intangible qualities. Become the indispensable person. Then show us—make us believe you’re the one.
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