VC Cautions Against Investing in Founders Due to Two Key Red Flags After Backing Billion-Dollar AI Company

Investor Insights: Carles Reina, an angel investor, emphasizes the importance of the first meeting with founders, where he looks for technical expertise and the ability to build products as key traits for investment consideration.

Red Flags for Investment: Reina identifies two major red flags that deter him from investing: a founder lacking technical skills and a startup operating in a crowded market, which can lead to inflated valuations and pressure for rapid growth.

Successful Investment Example: Reina's successful investment in Eleven Labs, a voice cloning AI startup, was influenced by co-founder Mati Staniszewski's technical background and innovative thinking, which he recognized during their initial conversation.

Personal Investment Criteria: Reina is selective about his investments, often declining opportunities that do not align with his interests or expertise, and prioritizes high-quality interactions with founders.