How did Arthur Rock evaluate the founders?

Arthur Rock, pioneer of venture capital in Silicon Valley (Intel, Apple, Fairchild), was famous for a simple rule: “I'm interested in investing in people.”

His filter wasn't the pitch, but the founder's moral fiber, ability to execute, and consistency.

The golden rule

“And what I'm interested in is investing in people .”

For Rock, ideas abound; teams capable of executing them with discipline and judgment are rare.

Criteria that Rock was looking for

1) Intellectual honesty

"I think intellectual honesty is really the key . And drive, fire in the belly. Those are qualities I look for when considering where to invest."

2) Internal fire (drive)

Sustained determination, hunger for progress, and discipline to overcome difficulties without self-deception.

3) Consistency under prolonged observation

"The first time you meet with somebody, everybody's on their good behavior... It's not until you spend a lot of time with them that you figure out whether your first impressions were right or not. Some people tend to contradict themselves. "

4) Execution over ideas

" Ideas are a dozen. It's the execution that's really the important thing ... Good people can change directions, but there are very, very few truly great people who can execute properly."

5) Build businesses, don't promise quick money

“Anyone who comes into the office and says, 'you're going to make a lot of money if you invest with me,' doesn't stand another two or three minutes with me because that's not what it's all about. It's about building companies .”

6) See reality as it is

“Difficult decisions require intellectual honesty , seeing things as they are, not as you want them to be , and then facing up to problems and doing something about them.”

Warning signs for Rock

• Self-contradictions. Saying A in one meeting and B in the next.

• Idealization of the business. Selling a fantasy instead of showing learning and adjustments.

• Seeking approval. Prioritizing being liked over telling the truth.

• Promises of getting rich quick. Lack of focus on patient development.

Mini-scorecard for investors (5 Rock questions)

1. Does it demonstrate intellectual honesty in the face of adverse data?

2. Do you have sustainable drive or just short-term enthusiasm?

3. Is it consistent across meetings? (Detect micro-contradictions)

4. Are you talking about building a business or multiplying money?

5. Does it show execution today, not promises for tomorrow?

Rock wasn't looking for the perfect pitch; he was looking for people capable of seeing reality, making decisions with fortitude, and executing with excellence . His judgment, decades later, remains an antidote to illusion and conceit.

“ Intellectual honesty is really the key … and fire in the belly .”

---

Recommended readings and sources

• Harvard Business School — “Interview with Arthur Rock” (2001). Original interview with excerpts on intellectual honesty, execution, and investment criteria.

• Silicon Genesis (Stanford) — “Interview with Arthur Rock” (2002). Oral history project; Rock explains why he invests in people.

• Book: Venture Capital , Sebastian Mallaby