Oct 14, 2014, 12:12 PM ETConference Presentation, Fireside Chat, Interview

Ron Conway at Startup School SV 2014

Entrepreneurial drive (work ethic, aggression, toughness) is largely an inborn trait, though management skills can be acquired.
Successful founders exhibit a "vocation" mindset, often prioritizing the company over personal relationships or sleep (a "24/7" commitment).
Founders must be able to make their idea infectious; without personal passion, recruiting a co-founder or team is nearly impossible.
The ability to hire and manage a team is a learned skill that requires self-education via books and blogs, rather than an innate ability.
Ron Conway emphasizes that 20% of startups fail regardless of the strategy, reinforcing the need to invest in the "people" rather than just the initial idea.

SV Angel has invested in over 750 companies over 20 years, having screened approximately 21,000 potential candidates (a 1 in 30 selection rate).
The firm operates on a "portfolio approach" strategy, accepting that 40% of investments may fail while seeking high-impact wins across the market.
SV Angel has evolved into a 13-person team, deliberately transitioning from the founder picking roles to a specialized division of "pickers" (20s) and "advisors" (older).
The firm's internal strategy dictates hiring smart individuals in their 20s to handle deal flow, while older partners focus on mentoring and advice.
Conway admits to still making mistakes regarding specific ideas, acknowledging that even after 20 years, predicting product-market fit remains difficult.

Co-founder Dynamics: Founders who meet, collaborate on the idea together, or share 99% of the initial excitement are preferred; single-founder applications are disproportionately rejected.
Interaction Patterns: Conway screens for communication breakdowns during interviews, specifically looking for interruptions or one founder dominating the answer as a "warning signal."
Product Focus: The primary trait for investment is "rifle focus" on the product; founders who are overly interested in PR, events, or fundraising are viewed as misaligned.
Personal Origin: The most compelling stories involve a founder solving a personal "aha moment" or need (e.g., YouTube, Facebook, Napster) before realizing a market exists.
Conviction Over Pitch: Ideas that sound "lame" or obtuse (like Pinterest) are acceptable if the founder displays relentless persistence and evangelism to find an excited partner.

Denial: A major failure point for young founders is the inability to admit a product lacks traction or market fit after prototyping.
Faking It: Founders who pretend to have traction or ignore negative data to maintain morale are likely to fail; honesty triggers team alignment.
Misplaced Priorities: Founders who prioritize "business-like" appearances, frequent networking events, or media interviews over building the product are viewed with skepticism.
Lack of Credibility: Founders who have not personally experienced the problem they are trying to solve often lack the necessary drive to survive the "hardest thing on earth."

SV Angel was founded in 1994 by Conway and Ben Rosen specifically to invest in "internet software" (the "Internet" at zero maturity), avoiding hardware and packaged software.
Conway explicitly rejects the motivation of money, stating his primary drive is the satisfaction of guiding founders like Zuckerberg and Page in their early years.
The firm has moved away from individual due diligence by the founder to a team-based process, with Conway now acting as a "grandfather" figure solving hard problems for portfolio companies.
Conway observes a pattern where successful founders (Zuckerberg, Page, Dorsey, Jobs) often appear rude or arrogant to outsiders because they are entirely consumed by product development.
Specific examples cited include Ben Silbermann (Pinterest) who spent years evangelizing a vague concept before finding a co-founder, and the 2008 mortgage crisis which inadvertently fueled Airbnb's early adoption.