Others will find this helpful

The Difference Between 1st Time Founders and Experienced Founders

You have probably heard some VCs say that they are more comfortable investing in experienced founders than investing in first-time founders. But what exactly is the difference between these two types of startup founders?

First, let's define what we mean by "experienced" and "first-time" founders. Experienced founders are those who have started a company before or have been part of a successful startup team. 

They have gone through the process of creating and growing a business, and have likely faced challenges along the way. 

On the other hand, first-time founders are those who are embarking on their very first entrepreneurship journey.

Now that we have a clear understanding of the terms, let's explore some key differences between experienced and first-time founders:

1) Knowledge and expertise:

Experienced founders bring with them a wealth of knowledge and expertise from their past ventures. They have already gained the necessary skills and know-how to navigate the world of entrepreneurship.

On the other hand, first-time founders may have some basic knowledge and ideas about starting a business, but they lack the experience that comes with actually running one. They may need more guidance and support in certain areas.

2) Experienced founders know that a product is not ready for release until it is 100% complete:

As a product development nears completion, new founders usually start to plan customer trials and marketing campaigns. However, experienced founders know that a product is not truly ready until it is 100% complete and meets all the necessary standards. They understand the importance of thorough testing and refining before launching to ensure a successful and sustainable product.

3) The importance of networking:

Experienced founders also understand the value of networking and building relationships in the business world. They have already established connections with potential investors, mentors, and other entrepreneurs, which can be valuable for their current or future ventures.

For first-time founders, networking may seem daunting, and they  may find it difficult navigating through the business community. 

3. The founder is the first chief sales-person:

Experienced founders understand that as the leader of their company, they are also the chief salesperson. They know that they need to pitch their idea and sell it to potential customers, investors, and partners. This requires not only confidence and passion but also effective communication skills.

First-time founders may struggle with this aspect, and may start to employ sales agencies to take on the sales role. While this is a viable option, it is important for the founder to also take on this responsibility and learn how to effectively sell their own product or service.

Related articles