Back Entrepreneurs Not Models

Andrew Wilkinson shares his investment philosophy, emphasizing that betting on exceptional entrepreneurs is more crucial than focusing on promising business models. His experience shows that losses typically come from prioritizing business potential over founder quality.

Key Points:

• Biggest Investment Mistake:

  • Betting on the business model instead of the entrepreneur ("the jockey")
  • Getting excited about business potential while overlooking concerns about the founder

• Investment Loss Pattern:

  • Minimal losses when buying entire businesses
  • Most losses occur in:
    • Venture investments
    • Betting on new concepts
    • Starting new businesses

• Success Formula:

  • Back entrepreneurs who can figure things out
  • Strong founders can navigate through challenges and pivot when needed
  • 100% of success comes down to betting on the right entrepreneur

• Risk Assessment:

  • Buying whole businesses is generally safer
  • Partial investments and ventures carry higher risk
  • Even great business models fail without the right leadership

• Investment Strategy:

  • Don't invest when excited about the business but doubtful about the entrepreneur
  • Prioritize founder quality over business model potential
  • Look for entrepreneurs who can execute and adapt