Sweet Spot Founder Framework

A framework for identifying the ideal founder profile for investment based on their previous exit experience.

The "Sweet Spot" Profile

• Previous exit to a major company (e.g., Twitter)
• Exit wasn't massively successful but showed competence
• Founder maintains hunger to prove themselves
• Has gained valuable experience from first venture

Why This Profile Works

• Proven ability to build and sell a company
• Not wealthy enough to become complacent
• Smarter than first-time founders due to experience
• More motivated than highly successful founders
• Avoids "wannabe Steve Jobs visionary types"

Red Flags to Watch For

• Too successful previous exits can lead to:
  • Lazy approach to new ventures
  • Visionary complex
  • Less hands-on involvement
  • Reduced hunger to succeed

Investment Decision Factors

• Founder background and track record
• Current product traction (e.g., "close to 7 figures in recurring revenue")
• Market opportunity size
• Early customer adoption from "cooler hipper companies"
• Team's ability to execute and iterate

Risk Considerations

• Product-market fit still being determined
• Competition from established players
• Broad vs. narrow product focus
• Sales and go-to-market challenges