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Hey, I’m Tim! ☕

Early-stage investing is all about betting on you, the cofounders.

Investors know that your product is going to evolve and you might not have super impressive metrics yet.

So what do they actually look for when you’re pitching them?

Surviving Speedbumps

Building a startup is a long, unpredictable road trip.

Face flat tires, detours, and probably a few fights over the AUX. Investors want to see if you can handle it when the road gets bumpy.

Iron Sharpens Iron

Psychologically, conflict is viewed as a threat, but in close, high-stakes relationships, it can be a catalyst for growth.

For iron to sharpen iron, three things must be true:

1. There are at least 2 pieces of iron. You must both be strong in your own right.

2. You embrace the high pressure and force necessary to grow together.

3. The technique is right. If not, even the strongest can’t sharpen each other.

Being nice and agreeable with your cofounder isn’t enough.

In the eyes of investors, a strong cofoundership doesn’t fear conflict but embraces it as a growth opportunity.

This takes form in a variety of ways:

• Helping each other practice pitching your startup

• Raising the bar for technical competency

• Challenging each other’s assumptions

Shared Sense of Humor

Laughing together is one of the most telling indicators of trust in any relationship.

I’m talking about a laugh-until-your-cheeks-are-sore-and-your-stomach-hurts-and-you’re-gasping-for-air kind of laugh. Not a polite chuckle.

First, humor requires vulnerability. You don’t make someone laugh by presenting a polished, perfect version of yourself.

You’re not a standup comedian. Nothing in a startup is rehearsed.

Second, it suggests you have history and chemistry.

Inside jokes. Stories you can’t tell in public or you’ll get cancelled. You know the type.

And of course, you’re going to need to be able to laugh with each other to endure the hardship of being an entrepreneur.

You’re in a dark tunnel and when you think you see a light — that’s a train headed your way. And if you can’t laugh it off, you’re never going to survive.

I talk more about this in my Cofounder Mode post.

Circumstantial Constraints

One of the questions on YC’s application is if any of the cofounders have conflicting responsibilities: school, work, life, etc.

We all have constraints. In some form or another, we all have reasons for “not now.”

But constraints force focus.

Investors want cofounders who are resourceful. Scrappy, creative, practical. The best startups don’t arise in a vacuum of infinite time and resources.

They’re also looking to see how you cover for each other.

Do you lean on each other when things get tough? Do you have a dynamic where one cofounder can step in when another needs to focus on something else?

In many ways, investors look at you the same way you look at a car at a dealership.

The quirks and features are nice, but fundamentally, the first question you ask yourself is “will this break down when I’m going 100mph?”

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Thanks y’all,

Tim He