The Cloak of Credibility

(and the psychology of being chosen)

October 31, 2025

Delivered October 31, 2025 @ 12:00pm ET

Weather in Bloomington, IN - Crisp, sunny fall day, 140 C / 560 F 👻 

Table of Contents

My name is Gerry Hays, Founder & CEO of Doriot® (pronounced “Doe-ree-oh”), named after French-born American U.S. General Georges Doriot, the father of Venture Capital.

I’m also an author (First Time Founders’s Equity Bible), inventor (U.S. patents for ads on t-shirts, coat checking, and VentureStaking® - pending), and 21-year professor of venture capital and entrepreneurial finance at Indiana University.

Democratize Venture is my platform to explore the venture markets and share the insights, strategies, and frameworks I bring into the classroom. It’s where practical advice meets mindset meets execution—for anyone ready to play the startup game.

The Modern Game of Silicon Valley: Selection — And the Psychology of Being Chosen

This week, I kicked off a 7-week course on Venture Capital & Entrepreneurial Finance with a new MBA cohort. Early in our first discussion, one student asked a question that cuts to the heart of startup investing: What’s the key to succeeding as a founder?

I told them the truth.

There are tens of thousands of people who could be great founders - just like there are tens of thousands of applicants who could thrive at Harvard or Stanford. But only a tiny percentage get in. And the ones who do? They receive something I call the Cloak of Credibility.

The Cloak of Credibility

The cloak of credibility is the layer of assumed legitimacy that comes from being selected by an elite institution. It doesn’t just validate your potential — it alters perception.

When someone says, “I got into Stanford,” or “We’re backed by Y Combinator,” the audience hears much more than the words. They hear: “This person has been vetted. They’re exceptional. They belong.”

The person wearing the cloak doesn't have to prove themselves from scratch. The brand does the work. And that’s what elite programs like Y Combinator, the Thiel Fellowship, and a16z Speedrun have mastered:

  • Select a tiny percentage.

  • Wrap them in the brand.

  • Let the world assume the rest.

External Signals, Internal Shifts

Once you’re selected, the external benefits are obvious:

  • Investors take your calls.

  • Talent wants to work with you.

  • The media pays attention.

But what’s often overlooked is the internal transformation—and in my view, this is the more consequential result.

When a founder is chosen, they experience a deep psychological shift:

  • Identity Affirmation – They feel validated. Their internal belief is mirrored by external approval.

  • Impostor Syndrome Fades – The question of “Do I belong?” becomes “Of course I do.”

  • Aspirations Rise – Being among elite peers raises what they believe is possible.

  • Confidence Solidifies – They move more decisively, lead with greater conviction, and take bolder risks.

This internal shift isn't about arrogance — it’s about finally having the license to believe in yourself at full strength. And, I believe this is an area of opportunity to exploit with VentureStaking®. It’s a selection program but, instead of it being a few people in a room doing the selecting, it’s the community making these decisions.

Wishing you a focused and fulfilling weekend,

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