Episode Transcript

November 2025

Transcript

Chapter 1

Introduction

You’re listening to Unlocking Liquidity – powered by PrimaryMarkets.

In this episode, we explore something that doesn’t appear in spreadsheets or pitch decks – yet may be the single most important factor in private market investing.

We’re talking about the human factor – and why founders themselves might just be the ultimate asset class.

Chapter 2

Founders as an Asset Class

In private markets, investors are used to crunching numbers – market size, competitive position, scalability.

Spreadsheets hum with projections on customer acquisition costs, gross margins, and capital requirements.

But behind all those numbers lies a variable that’s harder to model – and often more decisive: the founder.

Recognising founders as an asset class in their own right might sound unusual, but it’s becoming increasingly essential.

Ideas can pivot. Markets evolve. Products iterate. But leadership – true leadership – determines whether a company adapts or disappears.

Backing the right founder can transform a moderate idea into a breakthrough business.

Backing the wrong one can sink even the most compelling opportunity.

As Australia’s private markets mature, professional investors are paying closer attention to this human dimension – treating founder evaluation as a central part of due diligence, not a soft afterthought.

Chapter 3

Why the Founder Matters as Much as the Idea

Think about this: Atlassian didn’t start as the global collaboration software giant it is today.

Canva’s original product looked nothing like the billion-dollar design platform we now know.

What early investors saw in Mike Cannon-Brookes, Scott Farquhar, and Melanie Perkins wasn’t just an idea – it was execution ability. Vision. Resilience. The capacity to lead through change.

Because in early-stage investing, the idea is rarely the final product.

A great founder pivots, adapts, and evolves.

A poor founder clings to a vision long after it’s stopped working.

That’s the human factor in motion.

Chapter 4

How Investors Assess the Human Factor

So how do you evaluate a founder?

It’s not simple – but there are recurring traits and patterns investors now look for.

First, resilience and grit.

Private markets are littered with stories of rejection. Melanie Perkins, for instance, was turned down more than a hundred times before securing investment for Canva.

But that persistence convinced backers she had what it takes to weather the storms of scaling globally from Australia.

Investors ask: Has this founder demonstrated the ability to absorb setbacks – and keep building?

Second, scalability of leadership.

Some founders excel in the chaos of the start-up phase but struggle when systems, governance, and structure become necessary.

Venture firms often face this crossroad – can this founder lead tomorrow’s company, not just today’s?

Third, the ability to attract and retain talent.

In a resource-constrained environment, every hire counts.

Does the founder inspire people? Surround themselves with complementary skills?

A founder who can’t build and keep a strong team will eventually hit a ceiling.

Then there’s reputation and integrity.

Australia’s business ecosystem is tight-knit – word travels fast.

Founders who overpromise or burn bridges can find doors quickly closed.

But those who demonstrate integrity – even through failure – can raise capital again and again.

Finally, self-awareness and adaptability.

Great founders know their limits. They seek advice. They share credit.

Investors look closely at whether a founder clings to control – or embraces collaboration.

Because self-awareness often determines whether a founder grows with the company or stalls its progress.

Chapter 5

Why the Human Factor Matters Even More in Australia

Australia’s private markets amplify the importance of the founder.

Our domestic market is small. To scale, companies often need to go global earlier than their U.S. counterparts.

That takes ambition, cultural awareness, and the ability to navigate international capital markets.

Atlassian and Canva didn’t succeed because Australia offered a vast customer base – they succeeded because their founders had the vision and resilience to go global early.

And reputation capital counts for a lot here.

With a smaller pool of entrepreneurs and investors, track records matter.

Founders who deliver – or simply behave with integrity – can attract strong backing for their next venture.

Chapter 6

The Risks of Overlooking the Human Factor

Investors who focus only on the business model risk missing the human execution risk.

A great idea can collapse if the founder lacks discipline, can’t scale leadership, or burns through capital too fast.

On the flip side, some of the best returns come from investors who spotted a founder with extraordinary tenacity – even when their initial idea seemed modest.

But there’s another risk – bias.

Investors may unconsciously gravitate toward founders who “look the part”: young, male, technically trained.

By doing so, they overlook capable founders from different backgrounds.

Fortunately, several Australian initiatives are widening that pipeline – encouraging investors to tap into a more diverse, and ultimately more innovative, founder base.

Chapter 7

Treating Founders as an Asset Class

So what does it mean to truly treat founders as an asset class?

It means embedding leadership assessment into the core of every investment decision.

Allocating real due diligence time to observe and engage with founders.

Using structured tools – from psychometric tests to scenario planning – to stress-test leadership.

Considering reputational capital alongside financial capital.

And recognising that a founder’s ability to scale as a leader is as critical as the company’s scalability itself.

Because at the end of the day, the people at the helm drive value creation in private markets.

Backing the right founder isn’t about charisma or gut feel.

It’s about disciplined evaluation – resilience, leadership, integrity, adaptability.

Ideas shift. Markets evolve. Products iterate.

But the founder determines whether capital compounds – or dissipates.

Chapter 8

Closing: The Human Factor and the Future of Private Markets

For investors, treating the human factor with the same rigour as financial modelling can unlock substantial rewards.

Founders aren’t just the face of the company – they are the investment thesis.

They embody both the risk and the opportunity.

And for Australia’s private markets, where reputation, relationships, and resilience matter deeply, the human factor isn’t a variable – it’s the constant.

You’ve been listening to Unlocking Liquidity, brought to you by PrimaryMarkets – Australia’s leading platform for trading unlisted securities and accessing exclusive private investment opportunities.

For more on capital raising, liquidity solutions, or our latest market insights, visit primarymarkets.com.

Until next time – stay informed and stay invested.

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