David Lee at Startup School NY 2014

Lee says SV Angel prioritizes founders over ideas because ideas can change while a founder’s qualities endure. The firm favors people who build from personal experience, and its checklist includes communicating a clear vision. Lee argues that this skill helps founders attract employees, investors, and customers in a crowded startup market.

Lee describes backing Rick Morrison of Comprehend Clinical after Morrison made the case for improving clinical trials and explained why he was the right person to do it. When fundraising and sales stalled, Morrison asked investors and customers for specific feedback, then changed the product from a hosted solution to SaaS. After pitching Sequoia repeatedly and showing progress, he secured its investment.

Lee advises founders to assess investors by the help they can provide, based on the company’s needs and challenges. He describes Sift Science founder Jason Tan working with PayPal co-founder Max Levchin, who offered close mentorship and time in his office. Lee says that practical support can matter more than a more favorable investment deal.

Lee calls reputation a founder’s biggest asset and recommends building it by leading through example and focusing on what you can control. He recalls Sergey Brin and Larry Page attending every best-practices seminar, and HelloSign founder Joseph Lawler arriving at an SV Angel event with a list of people to meet. Lee presents these as examples of taking small opportunities seriously.