The Passion Investor

March 2, 2011

If the ROI Investor is focused solely on the money and numbers, the Passion Investor branches off in an entirely different fashion, focusing on the idea behind the startup.

You are the early adopters in the investment game. You are the players that are willing to jump in, get your feet wet and see the potential behind the idea before checking the numbers.

The strength of the Passion Investor comes from the lens with which they see innovation. These are the investors that will search out disruptive technologies and ideas and back them financially. They see how the ideas are going to change the market and jump in to help push the idea forward to market. A Passion Investor sees what an idea could be, not what the numbers say it is.

Not to say that financial return isn’t a concern for these individuals. More that their interests on focused on the future, what the idea can provide, not what the numbers suggest it will. If you are a Passion Investor this is typically what you focus on:

    1: The Why – This is all about belief, regardless of practicality. When you look at the company and its management team you are looking to see if they are focused on why they are doing what they’re doing, not how or what they’re doing. Your passion is going to be highlighted by your belief in what the team is trying to accomplish.

    2: The People –
    When you examine a startup company and initially look to the people, the management team and not the proformas you are more than likely a Passion Investor. You want to know where the team has been, what their experiences are and what their strengths are.

    3: The Action – When you’re a Passion Investor you get involved in a company in a fairly unique way. All the successes or failures and small bumps along the way get you more and more excited about your investment and the team. It is this activity that helps you hold on to a company, to see its breakthrough moment.