« Don’t be fooled by CEO salespeople with millions of followers; fancy titles, bravado, and past successes can be deceptive. »

Yes, it’s absolutely a thing in venture capital, and your instinct is right. Charisma and the ability to “sell the dream” carry enormous weight in early-stage fundraising. A great storyteller can make an unproven idea feel inevitable, sometimes powerful enough to unlock millions of dollars even when the business itself has little substance. History has shown plenty of cases where highly charismatic founders raised huge sums, only for the companies to unravel when the fundamentals failed to match the pitch.

This dynamic is often described as the “Charisma Gap” in venture capital—the difference in how charismatic founders and less-charismatic founders are perceived, funded, and supported, regardless of the actual strength of their business. Venture capital thrives on vision, and the founder who can stand in a room and make investors believe in a billion-dollar future has a huge edge. Storytelling can make early risks seem manageable, and it can push capital toward louder voices, even when quieter but stronger businesses are overlooked.

Part of this comes from pattern matching. Many investors look for traits they associate with past success—confidence, boldness, big vision. A founder with the right pedigree or the right swagger can feel like “the next Steve Jobs,” which sometimes shortcuts the diligence process. Add in the halo effect of social proof—thousands of followers, glowing press, or flashy connections—and it’s easy to see how charisma creates momentum that outpaces reality.

Some of the most famous blow-ups in recent memory illustrate this. Elizabeth Holmes convinced the world Theranos would revolutionize blood testing and raised over $700 million, despite the technology not working. Adam Neumann sold WeWork as a “tech-enabled community” rather than an office-leasing business and raised billions before the IPO collapsed. Trevor Milton at Nikola staged misleading demos while his company briefly hit a $3 billion valuation, and Domm Holland’s Fast burned through $100 million on hype around “one-click checkout.” Carlos Watson at Ozy Media sold a mirage of millions of engaged readers. In each case, the story—and the founder’s charisma—drove investor enthusiasm far more than the fundamentals.

Why does this keep happening ? The structure of venture capital almost guarantees it. At the early stage, there isn’t much hard data to analyze, so investing is largely about vision and belief. Add to that the ever-present fear of missing out—the idea that this founder might just be building the next Google or Tesla—and investors are more willing to suspend disbelief. Charismatic founders exploit this environment by projecting urgency and inevitability, making it hard for investors to slow down and question the details. Even seasoned VCs can get swept up when the pitch is polished and the founder relentless in their storytelling.

That’s why the industry has started to build safeguards. More investors now insist on talking to customers, checking retention numbers, and scrutinizing unit economics early—even when the company isn’t profitable yet. Many are wary of “Twitter-famous” founders who lean too heavily on their brand without evidence of execution. Backchannel references, smaller test checks, and a focus on sustainability are all ways savvy investors try to separate sparkle from substance.

And yet, red flags remain. Vague or constantly shifting business models, vanity metrics without proof, endless pivots reframed as “vision,” founders who dominate everything with their personality—these are all warning signs. Add in high burn, staged product demos, or pitches that lean more on pedigree than actual execution, and you have the hallmarks of a charisma-driven bubble waiting to pop. The smartest investors are learning to spot these patterns early and resist the pull of the pitch.

The truth is that the charismatic but hollow founder is now a recurring archetype in venture capital. That doesn’t mean charisma is bad—far from it. The best entrepreneurs use it to inspire their teams, win customers, and rally early believers. But when charisma replaces execution, it creates the conditions for spectacular failures.

So the lesson is clear. In today’s venture ecosystem, charisma will always get a founder in the room. But it should never be enough to close the deal. For founders, storytelling opens doors, but only results keep them open. For investors, the challenge is to look past the dazzle, focus on substance, and remember that the best companies don’t just inspire—they deliver. Charisma may light the spark, but execution is what keeps the fire burning.

Have a good one.