Gallo quotes a study done over four years, involving 64 investors screening 241 companies. He says:
“Investors based their judgement of the entrepreneur’s potential on 13 criteria and were asked to rank each one in order of importance to their final decision.
The strength of the opportunity and the strength of the entrepreneur were the most prized criteria, ranking numbers one and two.
“Perceived passion” came in third, well above such criteria as the entrepreneur’s education, style, startup experience or age.
The researchers concluded, “Perceived potential involves enthusiasm and excitement, and is distinct from how prepared or committed an entrepreneur may be to their venture…perceived passion does appear to matter to equity investors.”
This finding has been repeated in numerous other studies. It PAYS to discover your passion. It pays to ask, “What makes my heart sing?”, and to spend as much time and energy as you need to make sure that it is indeed on “what makes your heart sing” that you focus your efforts.
Invest in passion.