“Lion’s Den” and Co.: Founders are better investors

Another reason could be that outsiders like investors, customers, employees have a better impression of the company when a successful founder has invested in the company. 12.4 percent of the companies in which successful founders have invested later go public. Only 9.4 percent of the portfolio companies of professional venture capitalists with no founding experience succeed in doing this – and even fewer investments by unsuccessful founders (7.1 percent).