“Those of steadfast mind you keep in peace; in peace because they trust in you.”
-Is 26:3
IPOs are down roughly 64% from their 2021 peak, and venture funding has fallen to about $86 billion, its lowest level in more than a decade.
Capital hasn’t entirely disappeared. But It has become much more selective.
So what determines who gets funded?
Two Columbia University professors conducted a study of more than 10,000 founders. They found that personality traits, measured before a company even existed, were directly linked to outcomes: both funding and the exit.
One finding stands out.
Founders who scored higher in “neuroticism” (reactivity, emotional instability) consistently underperformed. They raised less capital, attracted fewer investors, and proved less likely to reach an exit.
Not sometimes. Remarkably, across the board.
Emotional instability compounds negatively at every stage.
Founders who are internally unsettled tend to build externally unstable companies.
There was also another surprising result. More “conscientious” (structured, organized, plan-oriented) founders raised about $170,000 more in early funding, yet were ~15% less likely to reach an exit than founders of average discipline. Likely a result of rigidity.
When investing, most look at the company vision, the problems it solves, and the structures it has in place. But ultimately, you’re not just investing in a business. You’re investing in a person.
This is exactly what stood out in my conversation with Kevin Bailey. The founders who endure aren’t the most reactive. They’re the most grounded.
From a Christian perspective, investing means encountering a person, not just outputs. The Lord looks on the heart (1 Sam. 16:7).
And increasingly, the data suggests that’s not just principled to focus on the person. That may be by design.
Have a blessed week,
Matt
For informational purposes only. This content does not constitute investment, tax, or legal advice, nor a recommendation to buy or sell any security.
Key Takeaways:
43% of startups fail due to mental health struggles & how you can help them
The six pillars investors can use to assess a founder
What elite athletes know about pressure that most founders don't
Why equanimity, not positivity, is the real predictor of founder success
ICYMI: Christian Investing in the News
A growing number of Christians are embracing Bitcoin not just as an investment, but as a moral alternative to the current financial system—raising a deeper question: does this reflect faithful stewardship, or a new form of “mammon” dressed in technology?
Bountiful Financial partnered with S&P Dow Jones Indices to launch the S&P 500 Christian Values Screened Index, screening out companies involved in abortion, gambling, adult entertainment, predatory lending, tobacco, and other activities conflicting with evangelical Christian values, with ETFs and additional products to follow.
For informational purposes only. This content does not constitute investment, tax, or legal advice, nor a recommendation to buy or sell any security.
30-Second Investment Terms and Strategies
SPVs (Special Purpose Vehicles)
An SPV (Special Purpose Vehicle) is a separate legal entity created to pool investor capital into one specific investment (e.g., a startup, real estate deal, or private company).
How it works: Investors buy into the SPV → the SPV makes one investment → returns flow back to investors.
Why sponsors use them: Keeps the cap table clean (one line item instead of many investors).
Why investors use them: Access to deals they couldn’t source on their own, often with smaller check sizes.
What to watch: Fees (setup + carry), deal quality, and alignment with the lead sponsor.
In Short: Think of it as a “mini fund” built for a single opportunity.
For informational purposes only. This content does not constitute investment, tax, or legal advice, nor a recommendation to buy or sell any security.
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