Investors spend endless hours debating markets, valuations, and TAM. But Anna Barber, Partner at M13 and former Managing Director of Techstars LA, argues that the greatest determinant of venture outcomes comes down to people; specifically, the unique mix of curiosity, conviction, and grit that defines the best founders.

Having worked with hundreds of startups, Barber has developed a pattern recognition playbook that cuts through noise. For angel and sophisticated investors, her insights offer a sharper filter for identifying the rare outliers who don’t just build companies, but endure the gauntlet of setbacks to create generational value.

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1. The fire sale lesson: growth without foundations

Barber’s first startup, Scribble Press, was born from passion, a Build-a-Bear for books, enabling kids to create their own stories. The concept was magnetic. The community was strong. The mission was deeply personal.

Yet, as Barber reflects, the company stumbled by scaling too quickly.

“We launched three stores before we even figured out what one year of single-store economics looked like,” she said. “In retail, that’s deadly. You can’t just pull back like in tech.”

For investors, the lesson is clear: product-market fit isn’t a vanity milestone, it’s the only foundation worth building on. In capital-intensive models especially, scaling before PMF is not acceleration, it’s self-sabotage.

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2. The founder traits that really matter

At Techstars LA, Barber evaluated thousands of decks and directly worked with hundreds of founders. Over time, she distilled what separates the good from the great:

• Deep curiosity: Great founders ask 25 questions a day, compounding their learning far faster than peers. Investors should listen for curiosity in conversation—does the founder volley back rehearsed answers, or do they treat a question as a springboard for exploration?
• Strong opinions, loosely held: The paradoxical balance of conviction and adaptability. Founders must project belief to attract talent and capital, but the best ones can abandon old ideas when new evidence emerges.
• Grit bordering on irrational: As Barber puts it, the single difference between founders who succeed and those who don’t is simple: the ones who succeed didn’t quit. They endured through a thousand moments when failure seemed inevitable.
• Trust magnetism: Who has the founder enrolled in their vision? Advisors, employees, or early evangelist investors are signals that extend beyond charisma and speak to durable trust.

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3. Spotting judgment in a 30-minute pitch

One of the most challenging questions for investors: how do you discern these qualities in a short pitch? Barber offers practical tells:

• Look for dialogue over debate. Does the founder treat your questions as collaborative exploration, or a ping-pong match to deflect?
• Observe who’s around them. Strong advisors and early hires are high-signal indicators.
• Listen for stories of resilience. A founder’s grit often shows up in personal history—whether that’s an Olympic rower making the team despite physical disadvantages, or a scrappy founder finding creative ways to secure resources.

These signals won’t guarantee success. But they dramatically improve your odds of avoiding founders who crumble at the first existential test.

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4. Why passion still matters to investors

Skeptical investors sometimes dismiss mission-driven narratives as soft factors. Barber disagrees. Scribble Press was born from her own deep connection to literacy and storytelling. That emotional tether kept her going through volatility.

“Founders need a real personal connection, not necessarily personal experience, but deep interest in solving the problem they’re tackling.”

For investors, founder-market fit isn’t just about resume credentials. It’s about whether the founder is personally wired to endure the grind of solving this particular problem, not just any problem.

5. The investor takeaway: filters for outlier selection

Early-stage investing will always involve uncertainty. But Barber’s filters help tilt odds in your favour:

1. Have they shown curiosity? (The learning velocity test.)
2. Can they project conviction while staying adaptable? (The judgment test.)
3. Will they keep going when the odds look grim? (The grit test.)
4. Do they inspire trust in others? (The magnetism test.)

Investors who over-index on market size or early traction alone risk missing the hidden edge in founder character. As Barber’s experience shows, great markets still require great navigators.

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Final thought: betting on people, not just products

For angels and sophisticated investors, Barber’s message is clear: product and market matter, but founders multiply or nullify both. The difference between a fire sale and a billion-dollar outcome often rests on qualities that can’t be easily charted on a financial model.

Curiosity. Humility. Grit. The ability to build trust. These are the compounding factors of venture. Investors who learn to spot them early aren’t just backing startups—they’re backing the rare individuals capable of bending markets to their will.

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Watch our full interview with Anna Barber here.

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This article is provided for informational purposes only and does not constitute financial product advice. Past performance is not indicative of future results. Angel investing carries risk, and you should seek independent financial or legal advice before making investment decisions.

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