Who’s Doing the Picking? The Power Shift in Venture Capital
Founders aren’t just seeking checks—they’re seeking character, conviction, and alignment.
Since venture capital took root in the early 1980s, the story was straightforward: founders pitched, and venture capitalists (VCs) picked. VCs cast themselves as gatekeepers, and much of the startup funding ritual reinforced that dynamic. Securing capital wasn’t just about the money—it was a symbol of validation. VCs held the keys to capital, connections, and process, shaping both the perception and prestige of who got funded—and by whom.
For founders, the path was clear: obsessively prepare. They spent countless hours imagining the ideal partner, the perfect firm, and the best deal structure. Crisp slide decks, finely-tuned narratives, and pitch rehearsals became the norm. Warm intros were currency. The power imbalance wasn’t just understood—it was baked into the system.
But that story is changing.
Today’s Founders
Today’s founders came of age in a world shaped by flux, fragmentation, and increasing diversity. Many grew up in households where parents held conflicting values or separated altogether, as divorce became more socially and legally viable. They went to school and lived in environments that were far more diverse—culturally, racially, ideologically—than those of previous generations, challenging them to navigate difference from an early age. At the same time, the internet democratized information, exposing them to competing truths and a broad spectrum of worldviews. Institutions that once commanded trust—governments, churches, schools—were cracking under scrutiny, and long-held beliefs were openly questioned or discarded. Rather than inheriting a fixed worldview, many of today’s most promising founders were forced to assemble their own, blending pragmatism with idealism. This upbringing fostered a resilience, skepticism of authority, and instinct for reinvention that now defines how they build, lead, and imagine what’s possible.
The Shift: The Auditions Are Mutual Now
In today’s world—flush with capital, fast-moving markets, deep tech, and abundant alternative financing options—top founders have options. And when you have options, you gain leverage.
Today, impressing investors is only half the story—the best founders are equally focused on who they’re choosing to partner with. They’re asking questions like:
Does this investor really understand my space?
Will they be useful in the hard moments, not just the celebratory ones?
Will they support the mission—or try to reshape it?
Do they have the conviction to stick with me through pivots, dry spells, and near-death moments?
Will they have my back not just as a visionary, but as an operator and board leader?
These aren’t just hypothetical questions. Founders want investors who truly understand their space, show up when things get tough, believe in the mission, and support them in every role—from founder to CEO to board member. And they talk to each other. Word gets around quickly. A term sheet might start the conversation, but real alignment is what seals the deal.
The Quiet Due Diligence
Founders do diligence, too—often silently. They notice:
How fast do you respond after a meeting?
Whether you send thoughtful follow-ups.
If you do potential customer or partner introductions without being asked, and without expectations.
If you bring in relevant portfolio introductions without being asked.
How clearly and concisely you explain your value, track record, and beliefs.
They’re not just listening to what you say—they’re watching how you behave.
Just as VCs rely on pattern recognition to identify high-potential founders, savvy founders are doing the same with investors. They’re watching closely for signs of what kind of partner you’ll be: Are you fair and transparent? Do your actions match your words? Do you follow through—or just overpromise? And when things get tough, do you step up—or fold under pressure? These patterns matter. Because founders aren’t just choosing capital—they’re choosing character.
The Future Is Founder-First
In a world where great founders are a rare commodity, the power balance has tilted. That doesn’t mean VCs don’t matter—quite the opposite. The best ones bring enormous strategic value, hard-earned experience, and emotional resilience to the table.
In today’s funding game, VCs need to pitch too.
Because the question isn’t just, 'Is this founder good enough for me? '
It’s: Am I good enough for this founder?
Closing Thought:
The best partnerships are mutual. The best deals are built on trust, alignment, and respect. And the best founders? They’re not looking to be chosen. They’re choosing.