An age-old adage from investors and entrepreneurs is they’ll always take an “A-quality person with a B-quality idea”, and not the other way around.

This means I’ll happily invest in a person or team I believe can produce a successful business.  The business idea itself?  Less important.

Because whether you realize it or not, business is all about things like execution and the ability to adapt to change.  Not a phantasm that solves the world’s problems like a lightning bolt.

Bad Investments
Ask most angels about their mistakes and the answer is usually people-centric.   They lament investing in the wrong person, not the wrong idea.

Look at these key characteristics of a successful business relationship.  Each is tantamount to a profitable and enjoyable experience, long before any dollar is made or lost.

Trust.  Communication.  Leadership.  Determination. These plus the aforementioned Execution and Ability to Change are what make a business successful over time.

As an investor, you want the opposite of the guy who’s chasing a lifestyle business.  You want the most determined business leader you can find to lead your investment to the promised land of a 10x exit.

Why Does the Idea take a Backseat?
Because most businesses start off doing one thing, only later to figure out what really works.

It’s more about talent, determination, and adaptability to change than the million-dollar idea.  Everyone knows this by now.

Personal Investment Contracts
One cool concept that exemplifies this point in the extreme is a ‘Personal Investment Contract”.  Compliments of Rafe Furst and EmergentFool, a PIC is when an investor offers a cash payment to a promising individual in return for a % return on their individual income in subsequent years.

In English (and in Rafe’s example), they gave $300,000 to a promising young mind in a lump sum payment.  In return, this budding star has to forfeit 3% of their income each year so long as the contract remains in place.  Read more about it here.

What’s crazy is I almost like this concept better than a traditional angel deal or investment.  It doesn’t have a single pesky business idea getting in the way.

Our Success has Come from People
When I look back on the past 8 years of businesses I’ve been a part of, here’s what I see:

-Innumerable Ideas.
-Many failures.
-A few successes.
-1 team.

The very reason that we’ve been able to do “growth partnerships” and other investments is because we have a team of people that exemplify the traits I listed above in bold.  (It’s also why you should team up with us!)

Takeaway
As an investor, look past the idea, and see only the people behind it.  That’s what you’re after.

(pic from Cybernet)

Want to get funded?  You might consider hiring Lady Gaga to sing your pitches.

Ma-Ma-Monah-Ma, Fund Me, Oh La La.

Don’t Be Boring
Startups and other entrepreneurs in search of funding have a tall task in convincing investors to take a chance on their ideas.  Your ability to be a good salesman in your pitch is very important, so don’t be boring.

Lulling well-fed money men to sleep with a boring PowerPoint and meek personality will kill your dream.

Proof you want?  I got me some proof.

Geodelic Wins Twiistup
Last week I was in Los Angeles for Twiistup, a tech investor and startup event.  (Fun times by the way.)

On Thursday morning, 10 or so companies took the stage and pitched their startup to the panel and audience.  While all the presentations featured generally well-spoken and passionate folks, one company took it to the max.

That company was Geodelic, a location service that lets you locate eateries, drinkeries, and other “around you” things.  They also have a sweet deal with airports watching departure times and showing terminal amenities.  View the demo here.

When it was their turn to take the stage, the CEO, who is Indian, took the stage with a ukulele.  He queued up some gaudy pink slides and started talking in corporate speak using a heavy Indian accent.  The collective thought was “This has to be a joke”.

It was.  He had 2 other Geodelic team members placed in the crowd, and they shouted out some taunts- “We can’t understand what you’re saying!”.

On point, he quickly pulled out the ukelele and began singing.  Then a girl danced to “Everybody dance now”.

The Geodelic slides simultaneously flipped from the gaudy pink stuff to a video demo of their technology in action – very fast-paced and demonstrative (something befitting of the attention span of people in 2010).

And surprise, surprise – They won the event.

The Takeaway
Geodelic got people on the edge of their seats, played to our senses, and put on a show.  

While they have a great product, everyone at the event admitted it was the way they nailed the presentation that pushed them to victory at Twiistup.

While I haven’t been an angel investor long, I suggest putting some serious thought and creativity into how you pitch investors.  If nothing else, a good “preso” makes it harder to dismiss your idea.

You can save time if you hire Gaga.  Oh La La.