5 Key Questions Every VC Should Be Asking Founders

Despite all the diligence, data rooms, and market sizing, Venture Capital is still a gut game—especially at the early stage.

We say we invest in founders, yet a staggering 42–65% of startup failures tie back to founder issues.

😬 42% of failed startups cite founder-related causes (CB Insights)
😬 65% falter due to management team issues (HBR)

Let that sink in.

In so many ways, the founder is the fund’s biggest variable. Yet, most investors evaluate them using a mix of intuition, charisma, and “founder vibes.”

We trust our pattern recognition.

We assume past performance predicts future resilience. We confuse confidence with capacity.

But here’s the uncomfortable truth: we keep writing checks to founders we don’t fully understand.

Is that bold? Or blind?

At the Founder Readiness Institute™, we built a tool to change that. It brings rigor to the human side of due diligence—the side with the highest potential downside and upside.

Especially at pre-seed and seed, you’re not just investing in a company.

You’re underwriting a founder’s ability to navigate uncertainty, align a team, and grow faster than the chaos.

Five Questions Every VC Should Be Asking:

✅ How does this founder handle complexity under pressure?
✅ Do they know how they’re wired—and how that impacts their team?
✅ What’s their stress response—and is it scalable?
✅ Are they building a company—or running from something?
✅ Can this person attract and retain the right people?

If you don’t know the answers, your diligence isn’t done.

Early-stage investing will always carry risk. But we can improve blind spots.

Let’s get founder diligence right.