Investor Motives: Simon Squibb on Backing People and Ideas for Humanity

In a recent LinkedIn post, investor Simon Squibb offers a perspective on the motivations behind successful investments, using the recent $13 billion valuation of Lovable as a case study. Squibb, an investor in over 80 companies, emphasizes that his successful ventures were not driven by a singular focus on financial returns, but rather by backing individuals and concepts he believed would positively impact humanity.

The Core of a Successful Investment

Squibb highlights his investment in Lovable, a company that provides a tool to build products without requiring coding or a technical co-founder. He explains his initial decision to invest was rooted in a desire to empower individuals with ideas and customer understanding but lacking the means to build their product.

“Anton Osika pitched me a tool that builds your product for you. No coding, no tech co-founder needed. And I thought about all the dreamers I meet who’ve got the idea and the customer… and no way to build the thing.”

According to Squibb, the potential for financial gain was not his primary consideration. “I never sat there thinking about the money it could make me. I never even thought it would become a $13 billion company. I didn’t care,” he states. His investment was driven by a more altruistic motive: enabling more people to bring their visions to life.

Re-evaluating Investor Motivations

Squibb suggests that entrepreneurs seeking funding should scrutinize their potential investors’ motives. He challenges the common perception, often fueled by shows like ‘Dragons’ Den,’ that investors are solely profit-driven.

Beyond the Bottom Line

“Everyone’s watched Dragons’ Den and thinks investors are only in it for the return. Most of the successful ones I know aren’t. They want to help someone. They want a thing to exist in the world that they believe should exist,” Squibb argues. This perspective reframes the investor-founder relationship from a purely transactional one to a partnership focused on shared values and the creation of useful entities.

The remarkable $13 billion valuation of Lovable, Squibb points out, is a testament to the value created when an idea meets a need and is supported by people who believe in its potential. He notes the positive outcome:

“And look at what’s actually happened here. $13 billion of value, out of nowhere. Nobody got taken from. Nothing got destroyed. A product exists that people needed, and it’s worth what it’s worth because it’s useful.”

Squibb concludes his post by encouraging founders to look beyond the immediate financial implications and consider the underlying motivations of those providing capital. He also includes a promotional code for readers interested in Lovable’s services.