Many founders and CEOs believe that external investors are the first “real” investors in a company. The media amplifies this narrative and venture capitalists reinforce it daily.
You’ve probably heard a founder say, “I don’t have any investors.”
But is this true?
“An investor is someone who believes in the vision before the world does.” – Naval Ravikant
Founders and CEOs work tirelessly to scale their technology companies through discipline to transform their industry and achieve an important dream.
They make enormous sacrifices across every aspect of their lives and sometimes lose themselves in the journey.
Yet they shortchange themselves by failing to develop the necessary financial acumen to describe who they really are and fail to articulate the real value being created each step of the way.
The White Belt Mindset: Founders Thinking Like Business Owners
A classic misstep among tech business owners, founders, and CEOs is being trapped in a builder’s mindset.
- Business owners focus on operations, constantly solving problems and navigating resource constraints. They’re working in the business rather than on it as a founder and CEO.
- Founders and CEOs focus on their technology, product, and market opportunity, believing they must lead from competence built over time. They operate as if they work for their company rather than own it.
- Visionaries and disruptors center themselves around doing what no one has done before, often believing value is created naturally as a byproduct of their insights into the future. Value is self-evident.
The Black Belt Mindset: Thinking Like an Investor
Redefining yourself as the first professional investor in your financial stack means shifting your approach across several dimensions:
- Your identity as an investor sets the tone for making decisions that drive long-term growth and value. Investing in your self-concept will give you a profound return on investment.
- Decision frameworks organize your activities and genius and focus attention on what activities should and should not receive time, talent, and treasure. You are a steward of these currencies for value creation.
- Equity optimization provides structure to maximize your equity stake for long-term gain, so you are always in the driver’s seat to allocate capital in the most efficient manner.
Case Study: The Professional Investor Journey of Brian Armstrong and Coinbase
Brian Armstrong founded Coinbase (along with Fred Ahrsam) with $150,000 in personal savings. But rather than seeing the money as mere startup capital, he treated it as a professional investment.
- Armstrong preserved a meaningful ownership stake through multiple funding rounds, leveraging his equity position.
- Armstrong made strategic decisions about capital deployment and market timing, continuing to build even during bear markets.
- Armstrong approached geographical and product expansion like a portfolio manager, diversifying risk while maintaining focus.
- Armstrong managed his equity professionally, implementing a systematic selling program post-IPO to control concentration risk.
His approach exemplifies thinking like an investor – not just a founder, CEO, or business owner – which has been hugely influential in scaling Coinbase to new heights.
Advanced Techniques: How Investor CEOs Build Stronger Companies
Equity as a Tool
Investors see equity as their most valuable asset and use it strategically. Every percentage point exchanged should compound future returns. The calculations are never based on a zero-sum game thesis. The results should be exponential.
Fundraising as a Strategic and Tactical Partnership
For those looking at funding, many view it as a lifeline to keep their company afloat. However, investors work with a clear, defensible, and sustainable business model. They seek partners who match their risk profile, expertise, and investment thesis. Investors see capital as a multi-dimensional force multiplier.
Risk as a Calculated Strike
Entrepreneurs often operate in survival mode, reacting to market changes and external pressures. Investors make strategic allocations that diversify, hedge against uncertainty, and build optionality rather than survivability.
Wealth Creation as a Deliberate Strategy
Many founders have worked tirelessly for years, only to realize that their business is worth less than expected. Investors, however, structure compensation, align activities, and ensure financial independence while scaling their companies. Wealth isn’t an accident; it’s a strategy.
Advanced Mindset: Breaking Through Mental Barriers
Why do so many founders, CEOs and business owners struggle to see themselves as the first professional investor in the companies they founded?
Three common mental roadblocks hold them back:
- “I’m not an investor, I’m a builder.” They take immense pride in designing something from nothing and giving up on this hands-on innovation is selling out.
- Emotional blind spots create attachment and cloud objectivity, making it difficult to commit to unpopular or tough decisions.
- Fear of losing control via the assumption that focusing predominantly on the money means prioritizing personal gain over impact.
The reality is investment thinking preserves control and amplifies the company’s strengths. Viewing opportunities objectively and being willing to pivot for greater returns is beneficial to all stakeholders.
You Already Are a Black Belt Investor
Whether you realize it or not, you have already been doing all the floormat exercises and warm-ups.
- You invested your money when you bootstrapped the company.
- You invested your time to get the concept off the ground.
- You invested your reputation by putting your name behind the company.
“The greatest investment a founder makes isn’t just their time or their money; it’s their identity.” – Reid Hoffman
What remains on the to-do list is owning the role.
In martial arts, true mastery is about awareness of yourself and your surroundings – which are physical, psychological, and emotional. A black belt uses movement efficiently by managing pace, energy, and positioning to their advantage.
Founders, CEOs, and business owners who embrace the role of investor achieve the same outcome. They lead from awareness and strength by embracing four key currency levers – capital, time, focus, and value. They manage risk with discipline and plan with foresight instead of reacting to capital pressures with uncertainty and apprehension.
Step Into Your Dojo: Own Your Investor Identity
The next time someone asks you who you are and what you do, try this:
“I’m the principal investor in [my company]. I also run it as CEO.”
Notice how people respond differently.
Notice how you feel after saying it.
If this perspective resonates with you, contact me on LinkedIn or at scott@purplefinchgroup.com
Contact me HERE if you’d like to learn more about one of my 4-hour consults for tech CEOs. Schedule a free 30-minute conversation.
Stay focused. Keep disrupting. Be well.
LinkedIn Post for Newsletter on Sunday
Your Hidden Identity as an Investor
Most business owners and founders believe investors come from the outside. In truth, and first and most critical investor in your company is you.
The shift from business owner and founder to investor CEO is the difference between working in your company and strategically building value within it.
It’s about making decisions with the precision of a blackbelt where you’re controlling capital, time, focus and equity.
You already have the role, now it’s just time to own it.
@alexturbull @melissakwan @mattwatson @chriskirsch @joesaunders @ganesh @roberto @almcbride @ketan @earlfoote @salabdulla
#investor #entrepreneurship #techCEO
Monday’s Post
You are Your Company’s First Investor
Most founders don’t realize they’ve been investors all along and think investors are the VCs who come later.
The reality is: the first and most critical investor in your company is you.
You invested capital when you bootstrapped.
You invested time to get traction.
You invested your reputation by putting your name on the line.
Shifting your identity from founder to Investor CEO is the difference between working in your company and strategically building value within it.
Learn more at my LI Newsletter – Disciplined Troublemaker Guide
– [link]
#InvestorMindset #TechCEO #Entrepreneurship
Wednesday’s Post
Three Ways to Think Like an Investor CEO
Decision Frameworks Drive Value
Thinking like an investor means knowing where to allocate your time, talent, and capital to create long-term returns. Not every opportunity is worth pursuing.
Equity is a Tool, Not Simply Ownership
Savvy investors don’t hold equity; they optimize and deploy it strategically. Every percentage point should compound future returns.
Risk is a Calculated Strike
Founders often operate in survival mode while investors hedge uncertainty, build optionality, and make deliberate moves to strengthen their position.
Start seeing yourself as the principal investor in your company, not just the founder or business owner. That shift will change everything.
Learn more at my LI Newsletter – Disciplined Troublemaker Guide
– [link]
#Scale #InvestorCEO #Leadership
Friday’s Post
Founders: You’re Already an Investor
Why do founders struggle to see themselves as investors in their own companies?
Three mental roadblocks stand in the way:
“I’m a builder, not an investor.” Many take pride in hands-on innovation and see investment thinking as selling out.
Emotional blind spots create attachments that cloud objectivity.
Fear that focusing on money means prioritizing personal gain over impact.
The reality?
Investment thinking preserves control and amplifies your company’s strengths. Viewing opportunities objectively and being willing to pivot for greater returns benefits all stakeholders.
A black belt uses their awareness to manage pace, energy, and positioning – exactly what professional investors do.
Learn more at my LI Newsletter – Disciplined Troublemaker Guide
– [link]
#FounderToInvestor #InvestorCEO #ValueCreation