So you want to start a company…do you have what it takes to be a leader?
Three heavyweights in the Seattle Startup community recently joined together for a fireside chat hosted by the Ladies of Startup Meetup group. The topic: attributes of a great leader.
The speakers were Susie Lee, Founder and CEO, Siren; Susan Preston, General Partner of CalCEF Clean Energy Angel Fund and Managing Director, Seattle Angel Fund; and Tim Porter, Managing Director of Madrona Venture Group.
Leaders of successful start-ups sometimes come off as super-heroes, so it was demystifying to hear these experts describe the basic attributes and behaviors that all entrepreneurs can hone to have greater impact.
Responding to the question “What makes a great leader?,” Susan Preston shared that a great leader is someone who is passionate but coachable and will listen, digest and apply advice. She also pointed out that the startup community is still male dominated and to succeed, woman leaders need to move away from defining themselves as women at work. “Great women leaders don’t consider their gender at all,” she said.
For Susie Lee, the key to being a great leader is being stubbornly malleable. It’s critical to stop doing something that isn’t working and to recognize there are many ways to get to an end goal. The key is to know when to pivot. “Leaders know what they are good at and are humble enough to know what they are not good at and where they need help,” she said.
What does Madrona Venture Group look for in entrepreneurs? First of all, according to Tim Porter, they must have integrity. “They should have high conviction and be a good listener – basically, they should have a high IQ and high emotional intelligence,” he said.
“In our experience, successful entrepreneurs can sell in a way that is not ‘salesy’ to a variety of audiences including recruits, investors, partners and the media.”
He believes the loneliness that comes with being a CEO can be offset by having co-founders as well as great advisors and board members.
Susie Lee chimed in that if you worry about how lonely and hard the role is, then you aren’t doing the things that really matter. “You only have so much energy and bandwidth. Be protective of each person on your team’s bandwidth and constantly ask what the smartest thing is to do. The hard way is usually not the best way,” she said.
Susan Preston suggests that in a world where everyone has an opinion about what you should do, the only voice that counts is the voice of the customer. And that is usually testable. The key is to follow the data.
Don’t ask for money, ask for advice
When it comes to raising funds, Susie Lee believes instead of asking for money, ask for advice. “The right question is: ‘How can you help me figure out how to succeed’ and the real goal is to identify if the potential investor is the right person to go on this journey with you.”
What makes a great investor sales pitch? According to Tim Porter, spend a lot of time talking about your customers. Lead with the problem and how you are solving it. Definitely don’t start with your technology. Susan Preston suggests that you test your pitch on your friends and family first. If they don’t understand, you definitely have a problem.
Are leaders born or made?
The final question posed to the panel was “Are leaders born or made?” The consensus was that the answer is both. Susie Lee thinks leaders can be ‘sculpted’ because the world gives us feedback which we can use in a really positive way to learn and improve. “A good leader is responsive. It’s humbling,” she said, “but it makes you stronger.”
Tim Porter believes that some people are born leaders but you can still be a great entrepreneur even if you are not a natural leader. “As long as you are passionate about your idea, you are a leader. Make sure you have great co-founders to help you lead effectively.” He closed by saying there are many paths to success and many ways to express your leadership. “If in doubt, go for it!”
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