Why Do VCs Keep Giving "failed" Founders Money?

Startup Therapy

In today's Startup Therapy Podcast, Wil and Ryan talks about why investors choose to invest on “failed” founders. They debunk the myth that failure marks the end of a founder's journey and shows why giving people a second chance is the best investment. Tune in as they explore the investor mindset, focusing on why they prefer to invest in founders who have shown they can bounce back and learn from failure, ultimately changing how we think about startup success.

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Resources:

• Startup Therapy Podcast
• https://www.startups.com/begin
• Join our Network of Top Founders
• Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

• 00:00 Intro
• 01:03 Why giving people a second chance is the best investment
• 02:29 Redefining failure
• 04:59 “One failure doesn’t make the person a failure…”
• 09:30 If you’re making mistakes, you’re also learning
• 10:05 Spotlight on failure
• 13:59 The value of experience
• 16:49 Before the failure, there was a success
• 20:33 Trust and familiarity in investor-founder relationships
• 23:21 Challenge of investor decision-making
• 27:14 Focusing on building relationships
• 30:42 Investing in the founder’s mindset rather than ideas