The Top Indicator That a Startup Is Not Worth Investing In
Table of Contents
#
Co-Founder AI
##
Main Indicator That a Startup Is Not Worth Investing In
Do you know the worst quality a startup founder can have? Overconfidence. When a founder believes they can achieve anything, it’s a clear sign not to invest — they’re likely to make the most costly mistakes.
#
Star Disease
Often, founders develop “star disease” after they’ve successfully built a traditional business or achieved a significant career milestone. Sometimes, it even happens right after their first successful startup. Personally, this happened to me twice: once after winning hand-to-hand combat competitions (turns out, that’s possible!) and once when my first startup allowed me to buy an apartment.
When I started a startup in such a state, I skipped thorough testing and immediately started sketching the final vision, implementing it step by step. It was as if the world was already completely understood, and I was creating a classic business with predictable economics and outcomes. Each time, it didn’t work — neither for me nor for other founders I’ve observed.
For example, a friend successfully ran a traditional business in Europe, moved to the U.S., and decided to launch a “Craigslist for Mexicans.” He called me to join the project. I listened to his idea, reviewed his prototype, and asked how many Mexicans he had interviewed. He admitted he hadn’t interviewed any because he doesn’t speak their language. I suggested he do his homework to assess the market, but he took offense, and we lost touch. (Unfortunately, his startup didn’t take off.)
#
The Learner’s Mindset
Instead of overconfidence, it’s far more advantageous to adopt a learner’s mindset. This means thinking, “I know there are things I don’t know, and I’m ready to listen and learn.” If customers perceive the product differently than expected, it’s a rare and valuable opportunity to hear them out and adjust accordingly.
When a client provides constructive criticism or shares their true needs, it’s a moment of genuine sincerity that’s crucial not to miss. The market is like a river with strong currents. While an overconfident founder struggles against the flow and gets exhausted, a savvy founder listens to the water, finds the current, sails with it, and achieves a state of zen. 🧘♂️