Top Traits Startup Founders Need to Raise Funding Successfully
Securing funding is one of the most critical and challenging tasks for startup founders. Investors do not just evaluate a startup based on its business plan or potential for growth—they look closely at the founders themselves. Research has shown which personality traits impress investors the most. The Founder Institute’s Entrepreneur DNA Assessment, which has analyzed over 185,000 entrepreneurs globally, offers deep insights into the characteristics that increase a founder’s chances of successfully raising capital.
FI’s methodology uses regression analysis and continuous feedback from founders, mentors, and investors. The collected data reveals that personality traits such as autonomy, fluid intelligence, and emotional control are strongly linked to the ability to raise funds. On the other hand, patience and agreeableness, though important in other contexts, appear to play a minor role during the fundraising stage.
The test, specifically tailored to entrepreneurs, has been refined over the past 15 years to provide a detailed understanding of the behavior that correlates with startup success. According to Founder Institute’s findings, 85.1% of the people who took the assessment either performed as expected or exceeded expectations.
Key Traits for Raising Funds
The Entrepreneur DNA Assessment identifies several traits that support founders in interacting with investors and increase their ability to lead startups through the early stages of growth.
1. High Autonomy
Autonomy signifies a founder’s ability to lead and make decisions independently. Autonomous founders are capable of navigating complex business environments without needing constant guidance. Investors want to see that entrepreneurs can manage their startups effectively and make sound decisions under pressure.
Furthermore, self-confident founders are capable of pivoting quickly when faced with obstacles.
2. High Fluid Intelligence
Fluid intelligence, the ability to solve new and complex problems, is another sign fundraising will be handled well. Founders with high fluid intelligence can think strategically, anticipate challenges, and adapt their business models when necessary.
3. High Emotional Control
Managing stress and maintaining composure under pressure is important during the fundraising process. Emotional control is the ability to remain calm and focused in high-stakes situations, an advantage that enables founders present themselves as reliable leaders. Startups are fraught with volatility, and investors want to know that the founders they back can overcome crises.
4. High Proactivity
Proactivity stands out as a key predictor of fundraising success. Founders who take initiative drive their businesses forward without waiting for opportunities to come to them. In the world of startups, time is of the essence, and proactive founders are often better positioned to secure investor meetings, refine their pitches, and close deals.
Traits Where Successful Fundraisers May Score Lower
Founders who may not excel in certain areas can still raise significant capital, provided they possess the features that matter most.
1. Low Patience
Founders who score lower on patience often perform better in fast-paced startup environments, particularly when it comes to raising funds. Patience can be a double-edged sword in the fundraising process—while long-term vision is important, the ability to act quickly and make rapid decisions is often more valuable during the initial stages of a startup’s growth..
2. Low Agreeableness
Agreeableness, or the tendency to prioritize harmony and avoid conflict, can be less significant during fundraising. Moderate agreeableness is useful for relationship-building, but highly agreeable founders may struggle in negotiations where assertiveness is required. Investors tend to favor founders who can stand their ground and make tough decisions, even if it means clashing with advisors or pushing back against investor demands.
3. Low Collaboration
Interestingly, the Founder Institute’s regression analysis revealed that successful fundraising founders often score lower in collaboration. This may seem counterintuitive, but in high-pressure situations like fundraising, decisiveness, and individual leadership often take precedence over teamwork.
4. Low Extraversion
Though extraversion is often associated with strong networking skills, it is not always mandatory for fundraising success. Many introverted founders have been able to raise significant capital by focusing on the solidity of their business model and data-driven presentations rather than relying solely on charisma. According to Harvard Business Review, introverts can excel in leadership roles within startups by being more deliberate and thoughtful in their decision-making, which investors often appreciate.
Conclusion
Understanding your own strengths and areas for growth can help you improve your chances of successfully raising funds and scaling your business. Of course, just because a personality trait does not play a major role in fundraising doesn’t mean it wouldn't be necessary in other areas of your startup’s development.
If you want to know how your personality traits align with successful founders, the Entrepreneur DNA Assessment is an excellent tool. In only 20 minutes, you can discover your strengths and learn how to improve your chances of securing funding for your startup. Start the test here.