You can be on Entrepreneur’s cover!

Angel Investor Esther Dyson on the Traits of Rock Star Tech Leaders An investor in companies such as Flickr and del.icio.us, Dyson shares insights on building a thriving company.

By Riva Richmond

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Angel Investor Esther Dyson on What Makes a Great Business LeaderA longtime investor in technology startups, Esther Dyson jokingly refers to herself as the "Internet court jEsther." But with Flickr and del.icio.us on her list of successful investments -- both companies were sold to Yahoo Inc. -- Dyson is an investor big industry players take seriously.

As do the entrepreneurs she invests in. Dyson is an investor and board member in tech firms Meetup, Eventful.com, Boxbe and Voxiva, as well as consumer genetics startup 23andMe. She also has a passion for spaceflight and aviation, which has not only led her to invest in companies in those industries, but also to complete cosmonaut training and entertain dreams of becoming a space tourist.

We sat down with Dyson to discuss what makes a successful tech entrepreneur -- and what doesn't. What follows is an edited version of our conversation:

Related: Foursquare's Dennis Crowley on Building a Massive Community

Entrepreneur: How do you know a great new business idea when you hear one?
Dyson: The job of an angel is not to pick winners, but to pick potential winners and help them become winners. I invest in things that excite me because I'm putting in my time, as well as my money. So I want to spend my time on things that are fun. I want to invest in things that I think ought to exist.

Entrepreneur: What qualities make an entrepreneur great?
Dyson: A lot of people now are building products, not companies. A company is an organism. You really want to build an organization where everyone feels that they are a member of the team, knows what the company is trying to do and understands their part in it.

Entrepreneur: What's an entrepreneur's biggest pitfall?
Dyson: Getting distracted. Running out of money. Thinking that you are the market. It's not that you need to be perfect, but you need to know what you're not good at and compensate. If you're not a CEO, find someone who is, and then they can help you realize your vision. If you are a CEO, find people who are better in specific areas than you are and let them do their thing.

The best description of a leader I ever heard was from Vittorio Cassoni [a former senior executive at Xerox]. He said: "I absorb uncertainty." I thought that was perfect. Leaders take away the uncertainty, the doubts for people. You absorb the responsibility and then you let people do their very best job. But you're the person who takes the blame if you didn't get it right.

Entrepreneur: What have you learned going from startup to big company?
Dyson: It's painful. It's like watching your cute nine-year-old become 14. When you have 10 people, you don't need policies; you need flexibility and you need people producing. When you have 100 people, you need policies.

And inevitably you have to deal with people who grow and who don't grow. With luck, you have some really wonderful early contributors who don't like big companies, and they go and do their own startups.

Related: HTC's Cher Wang on Innovation and the 'It' Product

Riva Richmond is a freelance journalist who has covered technology for more than a decade. She focuses on computer security, privacy, social networking and online business and has written for The New York Times, The Wall Street Journal and other national publications. Previously, Riva was a technology reporter at Dow Jones Newswires and regular contributor to The Journal's "Enterprise" small business column.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Growing a Business

To Achieve Sustainable Success, You Need to Stop Focusing on Disruption. Here's Why — and What You Must Focus on Instead.

Instead of zeroing in solely on disruptive innovation, embrace a pragmatic approach to innovation, recognizing and leveraging the potential within ongoing industry shifts.

Business News

Mark Zuckerberg Says This CEO Is the 'Taylor Swift' of Tech

Meta's CEO posed with Nvidia CEO Jensen Huang on Instagram Wednesday.

Real Estate

3 Emerging Trends Shaping the Future of Real Estate

These three innovations are reshaping the real estate industry — discover tips for effectively covering these trends.

Leadership

What We Have to Gain By Talking About Grief and Loss At Work

I lost my husband to cancer during Covid — here's how it changed how I lead at work.

Side Hustle

This Mom Started a Side Hustle After a 'Shocking' Realization in the Toy Aisle. Her Product Was in Macy's Within the Year — Seeing Nearly $350,000 in Sales.

Elenor Mak, now founder of Jilly Bing, didn't plan to start a business — but the search for a doll that looked like her daughter inspired her to do just that.

Fundraising

Avoid These 9 Pitch Deck Mistakes When Asking Others For Money

Crafting an efficient pitch deck requires serious effort, but at least it's not wandering in the dark since certain rules are shaped by decades of relationships between startups and investors.