The 38-Point Framework: What Makes a Unicorn Founder Tick

Identifying the next big thing in entrepreneurship is a daunting task, but two venture capital partners have developed a 38-point framework to help them spot the next unicorn founder. Paige and Leura Craig, founders and managing partners at Outlander VC, have spent years honing their skills to back companies like SpaceX, Scale, Flock, and Gusto, and their approach is yielding impressive results, with 18 unicorns under their belt and one more on the way.

Background & Context

The Craigs' experience in venture capital has given them a unique perspective on what makes a successful founder. Paige's background in the U.S. Marines and building and selling a private intelligence firm has also influenced their approach, which emphasizes character and execution. By developing a shared vocabulary around excellence, the Outlander team is able to assess founders with a more nuanced understanding of what it takes to be a generational entrepreneur.

The Craigs' approach is not just about identifying key attributes, but also about understanding how those attributes are scored and how the process is run. This framework serves as a way for the investment team to have a shared understanding of what excellence means, and it's a key factor in their success. As Leura notes, "More than anything, the framework serves as a way for the investment team to have a shared vocabulary around what excellence really means."

Key Details

The 38-point framework developed by the Craigs is divided into four domains: vision, intelligence, character, and execution. With a heavy emphasis on character and execution, the framework assesses founders across a range of characteristics, including obsession, fortitude, irrational optimism, and a clear sense of what motivates them. The Craigs use a combination of short calls, long calls, and deep dives to assess founders, and they've developed 21 intelligence-gathering-inspired elicitation tactics to get past canned answers and understand how founders conduct themselves under stress.

The Craigs are cagey about revealing specifics, but they do mention that they're looking for founders who can make decisions in chaos, who can constantly get things off the plate, and who can move forward despite obstacles. As Paige notes, "Basically, we're looking for these monsters that can make decisions in chaos, constantly getting things off the plate, constantly making decisions and just moving forward."

The framework has evolved over time, with the number of points waxing and waning from 14 to 43. The Craigs believe that who someone is can ultimately determine who survives, and they're looking for founders with preternatural forward momentum. By assessing founders across a range of characteristics, the Outlander team is able to identify those with the potential to be generational entrepreneurs.

What Experts Say

The Craigs' approach to identifying unicorn founders is not just about identifying key attributes, but also about understanding how those attributes are scored and how the process is run. By developing a shared vocabulary around excellence, the Outlander team is able to assess founders with a more nuanced understanding of what it takes to be a generational entrepreneur. As Leura notes, "More than anything, the framework serves as a way for the investment team to have a shared vocabulary around what excellence really means."

The Craigs' emphasis on character and execution is a key factor in their success. By understanding how founders conduct themselves under stress, the Outlander team is able to identify those with the potential to be generational entrepreneurs. As Paige notes, "For me, character's probably the most deterministic. Character, for us, is basically summarized as people who have incredible fortitude, who can endure anything, survive and lead others through it."

Key Takeaways

• The 38-point framework developed by the Craigs is a comprehensive approach to identifying unicorn founders.
• The framework emphasizes character and execution, and assesses founders across a range of characteristics.
• The Craigs use a combination of short calls, long calls, and deep dives to assess founders.
• The framework has evolved over time, with the number of points waxing and waning from 14 to 43.

What This Means For You

The Craigs' approach to identifying unicorn founders offers a valuable lesson for entrepreneurs and investors alike. By understanding what makes a successful founder tick, entrepreneurs can refine their own approach to building a successful business. Investors, meanwhile, can use the Craigs' framework as a guide for assessing founders and identifying potential unicorn candidates.

For everyday readers, the Craigs' approach offers a practical example of how to identify and support successful entrepreneurs. By focusing on character and execution, entrepreneurs and investors can make more informed decisions about who to back and how to build a successful business. As the Craigs' success demonstrates, identifying the next big thing in entrepreneurship is a daunting task, but with the right approach, it's possible to spot the next unicorn founder.

As the Craigs continue to back companies like SpaceX, Scale, Flock, and Gusto, their 38-point framework will remain a closely guarded secret. However, the lessons they've learned about what makes a successful founder tick can be applied by entrepreneurs and investors alike. By understanding the characteristics that define a unicorn founder, entrepreneurs and investors can make more informed decisions about who to back and how to build a successful business.