- January 28, 2025
- Posted by: EBAN Team
- Category: News
![](https://www.eban.org/wp-content/uploads/2025/01/1737378988957-1110x550.png)
Article by Caroline Saï – Director of Angels Santé
In a startup, much like on a ship, the captain plays a pivotal role. While navigating calm waters is straightforward, it’s during a storm that the CEO’s strength, vision, and resilience are truly tested. Yet, during critical due diligence phases, evaluating the CEO often relies more on instinct than on objective criteria—a paradox worth pondering.
Soft Skills: An Underestimated Factor
During due diligence, early-stage investors use rigorous checklists. They meticulously analyze technology, business models, financial plans, and market size. But when it comes to evaluating the CEO and their team, the assessment is often based on mere gut feeling.
For instance, doubts about arrogance or poor listening skills might lead to a dismissal; while promising preclinical results or a dreamy hyper-growth market could tip the scales in their favour. But is this approach efficient?
Being the CEO of an innovative startup is demanding, under pressure to live up to the myth of the superhuman leader. A CEO must be a financial strategist, visionary, ambassador, diplomat, leader, and operations expert all rolled into one. They must invest money, time and themselves deeply while avoiding overcommitment or a burn-out.
CEOs are exceptional individuals who can be categorized into six personality types, according to a Nature study of over 20,000 startups: Fighters, Operators, Accomplishers, Leaders, Engineers, and Developers.
The CEO’s Impact on Startup Success
The Nature study identifies the CEO and their team as the third leading cause of startup failure, following cash flow issues and poor product-market fit. Quite often, you don’t need to rely on scientific data to see this!
How many times, in the post-mortem phase, have we realised that the signs of a fragile, indecisive, arrogant, or emotionally unstable CEO were already perceptible during the due diligence phase, but their subtle signals had too often been overlooked ?
Or, on the contrary, a CEO’s charismatic presence can overshadow potential warning signs. Undoubtedly, the cognitive biases of each investor can significantly cloud their assessment.
Acknowledging the Importance of Soft Skills
At Angels Santé, we’ve decided to articulate these perceptions, identify warning signs, and raise awareness, among our members, regarding a CEO’s soft skills. While formal evaluation is best left to HR professionals, shedding light on these critical human qualities is essential for understanding the unique individual who is to lead investors on a journey that is as exciting as it is uncertain.
Key Qualities to Assess in a CEO
During due diligence, consider these fundamental aspects:
- Strategic Vision and Agility: The ability to define a clear vision and stay on course while adapting swiftly to changes.
- Resilience: Facing challenges while maintaining team motivation.
- Building and Managing a Complementary Team: Recognizing the need for diverse skills and forming a balanced team.
- Delegation and Leadership: Distributing responsibilities with trust, avoiding micromanagement, and inspiring the team.
- Knowledge Sharing and Corporate Culture: Establishing a strong and shared company dynamic.
- Transparent Communication: Building trust both internally and externally.
- Emotional Management and Avoiding Overinvestment: Handling challenges without succumbing to pressure and maintaining a healthy balance.
A seasoned investment director recently shared their regret over a failed project due to a difficult CEO:
“We are financiers guided by numbers. But losing €20 million because of a problematic CEO shows how invaluable a more comprehensive evaluation could be.”
Conclusion: Don’t Underestimate Soft Skills
Startups are, above all, human adventures. Let’s take the time to listen to, observe, and question the leaders at the helm. A solid captain ensures a smoother journey for all passengers and significantly increases the chances of arriving safely at port.