"In women"— Shark Tank mentor Kevin O'Leary credits his success on the show to female-led businesses

Kevin O'Leary, widely known as "Mr. Wonderful" on Shark Tank, recently shared insights into what makes startups successful. Posting a reel on his Instagram on January 8, 2025, he highlighted three key traits of great CEOs— the ability to pivot, maintain a high signal-to-noise ratio, and actively listen.

Reflecting on his 16 years of investing on Shark Tank, O’Leary stated that most of his successful investments share a common thread: they are female-led businesses.

"Now you look at all three of those attibutes, where do you find that the most? In women," he stated.

In the reel’s caption, he wrote,

“In startups, success depends on three key traits: CEOs who can pivot, leaders with a high signal-to-noise ratio, and people who actually listen. Talkers won’t make it. Over 16 years on Shark Tank, my best investments share one thing in common—women-led companies. The data doesn’t lie.”

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The three traits of successful CEOs, according to Kevin O'Leary

In the reel, Kevin O'Leary explained the three critical traits he believes are essential for a CEO, especially in early-stage startups, with rounds A and B of financing. First, he talked about the importance of being able to pivot.

“No matter what their business plan is, it’s never gonna happen that way,” he stated.

He believes CEOs must adapt quickly to the ever-changing business landscape, as rigid plans often fail in the face of new challenges.

The second trait Kevin O'Leary highlighted is maintaining a high signal-to-noise ratio. He explained that successful managers focus on advancing their mandate by identifying and completing critical tasks (“signal”) while ignoring distractions (“noise”).

Lastly, he underscored the ability to listen as the third trait.

“People talk too much. If you're meeeting somebody first time, they can't shut up, don't invest in them,” he advised.

He advised against investing in individuals who tend to speak a lot. Instead, he looks for leaders who listen two-thirds of the time and speak only one-third.

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Why do female-led businesses stand out for Kevin O'Leary?

Kevin O’Leary’s investment success with women-led businesses is not a recent revelation. As he mentioned in a Business Insider article published on July 27, 2017, all of his returns from Shark Tank investments have come from companies run or owned by women.

“I don’t have a single company run by a man right now that’s outperformed the ones run by women,” O’Leary stated.

O’Leary attributes this success to two key factors— time management and goal setting. He shared his observations during the Inc. GrowCo conference, explaining that women are particularly skilled at allocating time effectively, which is crucial for small businesses transitioning from a startup phase to scaling operations.

“If you want something done, give it to a busy woman,” O’Leary noted, referencing an adage that aligns with his experiences.

Kevin O'Leary believes that this efficiency in time management enhances productivity and employee coordination. The second factor he highlighted is women’s ability to set attainable goals.

“Guys tend to set goals that are very hard to achieve, outlier goals,” O’Leary explained.

O'Leary added that this often results in morale issues when targets aren’t consistently met. In contrast, women tend to establish realistic objectives that are achieved 80-95% of the time, fostering higher morale and lower employee turnover. This “sticky culture,” as O’Leary described it, contributes to improved productivity and better returns on capital.

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Watch Kevin O'Leary in the latest episodes of Shark Tank, available on ABC.