By Simon Devonshire (@tallmanbusiness), Director – New Business Ventures, Wayra Europe. 

Read Simon’s Tall Man Business blog here

24 April 2013: There has been a long running debate about whether entrepreneurs are the result of nature or nuture. Whether they are just born with an entrepreneurial-gene or whether entrepreneurialism can be taught / learnt.

This conundrum has some bearing on the question I’m often asked: what do I look for when selecting businesses to invest in (whether that’s an investment of either time or money)? There is a clear answer: talent.

I’m not alone. It has often been said that VC’s invest in people more than they do ideas or businesses.

So how do we define talent? What exactly is the elusive ingredient?

Well let’s start by eliminating some of the obvious characteristics and adjectives that have become mandatory requirements (it’s not an exhaustive list):

• Being an entrepreneur is tough, so they must possess: uncompromising tenacity; determination; resilience; stamina; self-sufficiency; improvisation.

• Then there are the commercial challenges, so they must also be: numerate; good hirers / effective fire-ers; masterful prioritisers; and commanding leaders.

• They’ve got to have an idea, sometimes several: so they must be visionary; creative; strategic; clear thinking; spontaneous; decisive.

• All of which is for nothing if the business doesn’t make sales: and so they must be effective communicators / influencers; authentic; charming; “charismatic”; professional-sales-practicioners.

• Knowing when (and being able) to be hilariously funny, also helps.

I think you may be starting to get the picture … It is no wonder that entrepreneurialism is regarded with so much celebrity.

So the three personal qualities that I look for in entrepreneurs are:

• People that have surrounded themselves with great people. Investors tend to prefer teams not individuals. They prefer complementary skills and positive chemistry.

• A track-record of proven results, demonstrable achievement.

• Intuition. People who possess a sixth sense with which to identify an opportunity; who trust their judgement; and act fast.

Noticeably absent in my list of criteria in order to invest, is any mention of demography. Age and gender have no preferential influence from my perspective.

Also absent is arguably my most important criteria: chemistry. I have to ‘love ‘em’ (or at least feel that that is possible). However, this is not an attribute that I’m looking for in an entrepreneur, but a feeling that belongs to me… but that’s for another blog post.

Please note: at Wayra (ie. my job) – I do not sit on the final judging panel that select which entrepreneurs are admitted into the Wayra Academies. The judging panels employ independent experts, only one of whom is a Telefonica employee.

Read Simon’s Tall Man Business blog here