How do venture capitalists decide who are great founders?
Some venture capitalists base their decision off of the person’s previous background. Others choose to assess a founder’s emotional quotient.
What makes a great founder?
As an investor, Natalie Fratto has to determine which founder would be the best to invest in. She looks for signs of one specific trait: adaptability. To her, it’s important to see how people react during the frequent times of inevitability change.
How is adaptability a sign of intelligence?
Our adaptability quotient is something that can be tested and improved. Fratto states how important AQ is for all of us because the world is also speeding up, which forces our brains to react.
Why is it beneficial to practice simulations?
It’s a safe testing ground for adaptability. Rather than testing how you retain information, you are tested on how you manipulate manipulation in order to achieve a certain goal.
What is the natural tension between exploitation and exploration?
Natalie Fratto states how we collectively overvalue exploitation. She gives the example of Blockbuster, of how the CEO filed for bankruptcy due to focusing on exploitation and not adaptability.
How is exploration described?
Fratto frames it as a state of constant seeking. We should not fall too in love with our wins, but continue to seek out what might kill us next.
What are the tricks to use on founders?
Natalie Fratto uses three tricks on founders. The first is to ask them "what if" questions. The next trick is testing signs for unlearning. The final trick is to look for people who prioritize exploration over exploitation.
What kind of future are we entering?
We are entering the kind of future where IQ and EQ matter way less than how fast we are able to adapt.