I recently attended meetings where experienced VCs and Founders claimed that money is the primary driver of successful entrepreneurs. This idea stood out because it conflicted with much of what I have experienced directly as an Investor, advisor, and mentor, as well as what I have learned as a researcher. Money-motivated individuals often find more reliable paths to wealth outside uncertain startup ventures. Also, the belief that cash alone fuels success seems too narrow. I wanted to understand why such a perspective would surface and whether it missed a more subtle truth. Early-stage VC performance is tied to identifying the real driver of successful entrepreneurs, making this question urgent for Venture Capitalists.
In This Article
Money as the Main Driver of Successful Entrepreneurs
I recently attended a small gathering hosted by a top-decile Venture Capital fund. I sat around a polished wooden table with the firm’s managing partner and other Investors. The tone felt open and thoughtful. As the conversation progressed, someone asked the managing partner a direct question: If she could pick one trait to prioritize in a Founder, what would it be?
Without hesitation, she answered: “Money.”
That single word surprised me. It seemed too blunt and too simple. Money as the primary trait? I had expected something else—maybe resilience, creativity, or a strong sense of mission. Over the years, I have encountered many Founders who pushed through hardships for reasons beyond earning a fortune. Yet here stood a respected Venture Capitalist, well-regarded for her track record, stating that money mattered most.
When I followed up, she clarified that she did not mean greed or a shallow pursuit of wealth. She meant that great Founders have a sharp business sense and understand how to produce value that markets recognize. However, this explanation still felt incomplete. It suggested that money served as a stand-in for something else. While this nuance helped, it did not resolve the tension I felt.
I’ve worked on this topic for years, gathering my thoughts and VC best practices in the article below and its companion webinar. It lays out all the qualities top Investors look for in Founders.
A few days later, I presented early findings from my doctoral research to a group of Founders. My work centers on why entrepreneurs persist despite severe stress and uncertain outcomes.
After I shared my research question, a Silicon Valley entrepreneur spoke up. She claimed that many Founders she knew, particularly those who eventually exited successfully, persisted because they cared about becoming wealthy. In her experience, money explained why they kept pushing through late nights, failed prototypes, and emotional strain.
She offered a vivid example. One entrepreneur she knew had grown up in a family overshadowed by an unjust business split. This person’s parent had lost a share of a family enterprise, leaving a lingering sense of injustice. The parent had inoculated the entrepreneur’s need to make his own wealth, so he didn’t depend on others.
For the Founder, making money became a way to avenge his parent. He pushed through countless struggles, pivoted multiple times, and stuck with his company long after many would have quit. Most budding entrepreneurs have no idea how brutal the path they choose is. Kevin O’Leary laid it out well.
Eventually, the Founder did achieve substantial financial success.
Yet once he “won” in that sense, his motivation vanished. In the absence of that deep emotional drive, he drifted into harmful behaviors that damaged his relationships. The money he once craved no longer held meaning.
Money often symbolizes something else: personal victory, self-sufficiency, or healing old wounds. Seen this way, money might be more of a marker or a tool than a root cause.
What Does Research in Entrepreneurial Motivation Say?
My curiosity about this topic led me to revisit research on entrepreneurial motivation. Multiple studies in psychology journals and reports from academic research centers present a more nuanced picture.
While money matters, it usually does not stand alone. Many entrepreneurs emphasize autonomy, the freedom to decide what to build and how to build it. Others value personal growth, using their ventures to stretch their skills, challenge themselves, or solve problems they find meaningful.
A 2015 report by the UK-based Enterprise Research Centre (ERC) examined what drives individuals to start and grow businesses. The findings emerged from over 50 in-depth interviews, 1,000 survey responses, and several case studies across multiple regions and industries. The ERC research pointed to seven dimensions of entrepreneurial motivation, each capturing different aspects of why entrepreneurs persist:
- Achievement, Challenge & Learning: Entrepreneurs are often driven by a desire to overcome obstacles, improve themselves, and gain mastery in their domain.
- Independence & Autonomy: The ability to work on their own terms and make independent decisions motivates many to pursue entrepreneurship.
- Income Security & Financial Success: While not always the primary driver, financial stability and success provide validation and resources to achieve broader goals.
- Recognition & Status: Many entrepreneurs seek acknowledgment for their efforts, whether in the form of societal status or respect from peers.
- Family & Roles: Responsibilities or aspirations tied to family—such as providing for loved ones or continuing a family legacy—can serve as powerful motivators.
- Dissatisfaction: Discontent with traditional employment or existing solutions in the market often pushes individuals to create their own path.
- Community & Social Motivations: A desire to contribute to society, solve collective problems, or support local communities frequently underpins entrepreneurial endeavors.
The ERC’s work and related studies suggest that money often appears as one element in a blend of motivations. It can serve as validation, confirming that a Founder’s efforts produce results others find valuable. It can function as a tool, enabling growth, experimentation, or even philanthropic giving.
Wealth-seeking links to growth ambitions, while seeking independence and autonomy does not.
Ute Stephan, Mark Hart, and Cord-Christian Drews (Source: ERC, 2015)
Some entrepreneurs view money as a stepping stone to fund new ventures or support family members. Others see it as a form of recognition, proof that they have succeeded where others have failed.
Even studies that found a statistical link between growth ambitions and wealth-seeking (mostly in nascent entrepreneurs in the US) concluded that “money is a measure of achievement rather than an end in itself.”
Psychological research supports this complexity, indicating that lasting motivation often emerges from internal drives rather than external rewards. Intrinsic motivations—like curiosity, passion, or a sense of mission—tend to foster more resilience. When hardships arise, those driven only by a financial goal may lose heart sooner. By contrast, those guided by deeper interests often persist, adapt, and find ways around obstacles.
I detailed these findings in the article below.
The story of the entrepreneur inspired by an old family injustice underscores how money can symbolize something deeper. In that individual’s case, financial success signified personal redemption. Once that inner need resolved, money alone failed to sustain any sense of purpose.
Promotion vs. Prevention: A Useful Lens
More than money, I believe successful entrepreneurs are pull forward by a strong desire to win.
In previous work, I explored the idea of “promotion” and “prevention” mindsets, based on research by psychologist E. Tory Higgins.
- Promotion-focused individuals chase gains, seek advancement, and show optimism about future rewards.
- Prevention-focused individuals concentrate on avoiding losses, maintaining security, and meeting obligations.
My research suggests successful entrepreneurs often fall into the promotion category, pushing forward despite uncertainty. For them, money may represent a measure of progress or a symbol of “winning” rather than a core motivator on its own.
I explored Higgings’s “regulatory focus theory” in many articles on this website, arguing that the framework applies to both VCs and Founders. The article below is a good place to start digging.
Monetary incentives framed in terms of gains (promotion-focused) are more effective for individuals with a strong promotion focus. It may explain why money-focused entrepreneurs succeed. They interpret wealth not as idle luxury, but as proof of competence, mastery, or a job well done. Still, the risk remains that once the final goal is met—once the wealth arrives—the underlying fuel burns out.
On the other hand, prevention-focused entrepreneurs might also desire wealth, but for different reasons: they crave financial security, a safeguard against failure, or a reliable fallback for their families. This approach can create steadiness and reduce reckless gambles. Yet it might also limit the boldness that characterizes many high-growth startups.
Conclusion: tl;dr
Reflecting on the initial conversation with the managing partner of the top-decile VC fund, perhaps her emphasis on money was shorthand. The broader conversation shows that money alone does not explain why entrepreneurs push forward despite tough odds. Personal histories, emotional triggers, goals like independence or achievement, and cultural factors all shape their persistence.
Entrepreneurs rarely chase money in isolation. They seek to solve problems, prove themselves, improve their lives, or (sometimes) help others. They want validation, freedom, and a sense of purpose. Money often marks progress toward these deeper aims.
At the end of the meeting, I asked her: “Do you think the Founders you describe as being motivated by money are, in fact, driven by a desire to win?”
She paused, reflecting on the question before nodding in agreement. “Yes,” she admitted, “it’s not really about the money itself—it’s about proving something, achieving something.”
