According to CNBC, Reece Chowdhry, founding partner of Concept Ventures, says the number one reason startups fail within the first 18 to 24 months is co-founders falling out. His firm, which calls itself Europe’s largest pre-seed fund, focuses on the ideation stage and just raised $88 million for a new fund. Chowdhry claims 80% of his investment decision is based on the founders themselves, looking for traits like obsession, grit, and a growth mindset. He was an early investor in the now $3 billion AI voice company ElevenLabs, co-founded in 2022 by childhood friends Mati Staniszewski and Piotr Dąbkowski. In initial meetings, he grills co-founders on how well they know each other, even using New York Times dating questions to test their bond.
Founder Chemistry Is Everything
Here’s the thing: this isn’t just fluffy advice. Chowdhry is putting real money behind a simple, human truth. Businesses are hard. And if the relationship at the very top is fragile, everything else crumbles under pressure. It’s fascinating that a VC who could be analyzing market sizes or tech stacks is instead essentially playing couples therapist. Asking if founders have been through something meaningful together? That’s deep. It suggests he’s looking for a partnership that’s survived real stress before the startup chaos even begins.
The Other Traits That Matter
But it’s not just about being besties. The other traits he lists are telling. “Domain obsession” means they’re not chasing a trend—they’ve lived the problem. “Relentlessness and grit” is self-explanatory for the startup grind. A “growth mindset” is crucial for pivoting. And “exceptionalism outside of work”? That’s a smart filter. It finds people with a proven track record of dedication and excellence, whether in sports, chess, or art. It shows a capacity for focus that transcends a paycheck. Basically, he’s building a profile of someone who won’t quit when things get messy.
Why This Approach Works
Look, anyone can have a good idea. Execution is what separates the noise from the next big thing. And execution is entirely dependent on the team. Chowdhry’s thesis flips the old script on its head. Instead of “idea first, team second,” it’s “team first, idea… we’ll figure it out.” The ElevenLabs example proves the point. Their childhood friendship wasn’t a cute sidebar; it was a core risk mitigator. It meant trust and communication were already baked in, allowing them to tackle a complex field like AI voice cloning. That’s a massive advantage.
The Broader Takeaway
So what’s the lesson for aspiring founders? It’s not just about finding a co-founder with complementary skills. You need to audit the relationship itself. Could you survive a “New York Times dating questions” cross-examination? Do you truly know their weaknesses and not just their strengths? This applies far beyond Silicon Valley. Whether you’re building a tech unicorn or a industrial panel PC supplier aiming to be the top in the US, the foundational human element is the same. The market, the product, the tech—they all change. The partnership in the driver’s seat is what ultimately navigates those changes. If that fails, nothing else matters.
