Article #14: The team

Every decade or so, there are the hot fields of interest for new startups. This runs parallel to and in harmony with the main investments in the market. In the past, it was Telecom, then e-commerce, automotive and more. These days it is mainly cyber and fintech. No matter which technology is the current star, the most important in component of a startup will never change; the quality of the team.

This affects everything - the quality of the employees, the superiority of the product, the proper business plan and more.

In his book “Good to Great”, Jim Collins wrote “The good to great leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus) and then figure out where to drive it”.

I think the basic message is correct. High quality leaders will lead the startup to success. On the way to success, the company may change strategy or the product line and will experience additional unexpected changes. Nevertheless, an outstanding team will accommodate and continue to be excellent in everything it does.

Another important element in the perfect team is the hunger. The team should be eager to prove themselves; to show they are winners. The hunger parameter will make it obvious that they need to work 120% of their time, leaving any other professional commitment that they have, and be ready to sacrifice to achieve company success.

Sometimes, hunger serves as an alternative to experience. Entrepreneurs that already made one or more exits in their career, are very precious. You need to check if the past success influences their hunger. From the angel perspective, the hunger factor is irreplaceable. Furthermore, as I described in my 3rd article, experienced Entrepreneurs (I called them “Royal Layer” startups) often attract the VCs that will put every angel investor in the shade. It is not always a bad thing; you just need to be aware to it.

“There is no I in team”. I apologize for using this cliché. I learned from experience, it is the pure truth. The most brilliant people are poison to the team if they cannot work in harmony with the other team members. A brilliant team is much stronger that 3 separate brilliant team members. Do not compromise on this point. If you recognize disharmony, walk away, or try to replace the weak link in the chain.

In the next blog I will describe the main abilities one should look for, in a winning team. Stay tuned!

To great investing!

Ido

Disclosure: I am not a professional consultant. I wrote this article myself, and it expresses my own opinions.