What's the most valuable asset in an early-stage startup? It’s not the business plan, the slide deck, or even the initial product. It's the founder.
A common mental model early-stage VCs use to evaluate a startup can be simplified into a formula:
In the earliest days of the startup lifecycle, markets and products are still theoretical. A founder’s vision, grit, and ability to execute is often the only thing an investor can truly bet on. As such, most VCs have a mental (or literal) scorecard they use to quickly vet whether a founder is worth backing.
As a Venture Studio, Philo operates a bit differently than a traditional VC. Our initial bet is on ourselves as the founder (specifically, an “institutional founder” engaging in parallel entrepreneurship, i.e., pursuing several startups at any given time), particularly well-suited to capture compelling opportunities through our codified best practices and specialized resources. Nevertheless, finding high-caliber Founders-in-Residence–capable of taking our portfolio companies from validated concept to billion-dollar business–remains as critical to us as it is to a traditional VC. Identifying the most capable founders, even if through a slightly different process, remains core to our investment strategy; not surprisingly, our founder scorecard looks a lot like those of traditional VCs.
Below, we'll walk through the classic VC founder scorecard, while sharing our own perspective on how we evaluate and support the critical traits that make a Founder-in-Residence (FIR) stand out. One advantage you’ll note we enjoy that most VC’s don’t: the opportunity to engage with potential FIRs first as advisors, working with them over an extended period of time to ensure they’re fantastic and a great fit for our portfolio companies.
VC Perspective: Investors look for founders who are almost irrationally committed to solving a real and meaningful pain, while remaining pragmatic in their efforts to find a solution. Obsession with the problem keeps a founder pursuing the right solution; pragmatism ensures that the correct solution is found.
Proof Points:
Philo Perspective: By the time we start talking to potential FIRs, we’ve usually identified and validated a pain we’re excited to address and started exploring solutions. At that point, we're looking for an FIR who shares our excitement. At the same time, we’re looking for a founder who can act as a thought partner, challenging our assumptions, refining the vision, and clarifying the path forward.
VC Perspective: The ideal founder is uniquely positioned to build this company in this market through deep domain expertise, technical skills, proprietary insight, or a network that opens doors competitors can’t.
Proof Points:
Our Take at Philo: We value classic founder-market fit, and consider this in our FIR recruiting efforts. That said, we also welcome FIRs who can make up for lack of industry experience through extreme empathy and velocity. In fact, our experience suggests that, on occasion, coming in without deep industry baggage can be an advantage, allowing an FIR to bring fresh thinking to a problem and avoid falling into “the way it’s always been done.” What matters most is that the founder is passionate about serving the particular industry and can find or create an unfair advantage, whether through their existing resources, Philo’s resources, or through sheer willpower.
VC Perspective: Startups are a rollercoaster. Every founder gets knocked down; the great ones get back up. Investors want to see a track record of persistence under pressure.
Proof Points:
Our Take at Philo: Even with our resources, the ups and downs are unavoidable. FIRs need to have already proven they can do hard things when conditions are less than perfect. In our advisory engagements, we’re seeking candidates who go above and beyond, break through walls, find creative solutions, and otherwise tackle obstacles with the intensity required of a founder.
VC Perspective: Execution eats ideas for breakfast. Investors back founders who move fast, learn quickly, and iterate toward traction.
Proof Points:
Our Take at Philo: During the advisory phase, FIR candidates aren’t running the company yet. But they are running sprints on targeted challenges with us. When they crush those sprints, delivering quality results fast, it’s a strong signal they’ll thrive once they take the wheel full-time.
VC Perspective: Founders must be the chief evangelists for their companies, able to sell the vision to investors, talent, and customers. Big visions drive big outcomes, and investors are looking for conviction and clarity in those visions.
Proof Points:
Our Take at Philo: This is non-negotiable. An FIRs must develop their own compelling vision that can rally investors, talent, and partners. We look for this capability throughout our interactions with potential FIRs, from the way they tell their own stories to the way they help craft and refine the vision for our portfolio companies.
VC Perspective: Investors want founders who will listen, learn, and adapt when needed, without losing confidence. Coachability isn’t about saying “yes” to everything; it’s about integrating the best ideas and data into the plan.
Proof Points:
Our Take at Philo: Our extended “test drive” with FIR candidates is where we see this clearly. We assign ownership of real tasks, give feedback, and watch how they respond, not just in words, but in actions. A founder who can both hold strong opinions and evolve them in the face of better data is gold.
VC Perspective: The best founders attract the best people, from hires and customers to investors, despite limited resources. Paired with a compelling vision, magnetism and the ability to drive execution, positions a founder to make incredible things happen.
Proof Points:
Our Take at Philo: FIRs aren’t hiring yet, but we watch for signs of “magnetism” in other contexts. Can they get potential customers to sign on as design partners? Can they recruit top-tier advisors? Can they generate excitement that opens doors?
Becoming an incredible founder isn’t just a matter of chance; the best founders have worked hard to develop the attributes and advantages outlined above and position themselves for success. Interested in becoming a founder? Use the checklist above to identify areas of strength and areas for improvement as you progress along the founding journey.
Of course, as Machiavelli wisely noted, one needs to put oneself in the way of opportunity (“fortune”) for their abilities (“virtue”) to be of value. At Philo, we believe that pairing a world-class founder with a validated idea, strong execution framework, and deep resources is the most reliable way to pair virtue and fortune in the pursuit of incredible outcomes.
August 20, 2025