It is a well-known fact that all investors, who know what they are doing, rarely invest in a company just because they like the idea. There are many more factors that play a key role and one of these factors that has a lot to do with the capabilities, the experience, and collectiveness of the founders and team members.
Investors are not delusional. They know that ideas are worth nothing if they are not executed right. This is why they carefully evaluate the potential of the team of a starting company before they sign that check. So, what are these so valued team attributes that are so valued by most investors?
Investors look at the skill set of each and every member of the core team. The broader the skill sets are the better. The more diversity in experience there is the better. The more of the team members complement each other’s skills the better.
Investor pitch tip: ALWAYS include in your presentation a slide to introduce the core team with enough information about their experience, skill set and role in the company!
It is obvious when two or more people click; obvious and also necessary for startup team members. When there is chemistry in the team the processes within the company are handled better and smoother; the relationships with the customers are handled naturally and the whole communication within and outside the company is held with the right tone. If the team members don’t understand each other, argue and simply can’t work together smoothly, it is impossible for them to communicate flawlessly with the outside world, including with the investors and the investors’ teams.
Investor pitch tip: Mention how long you have known each other and on how many other projects you have worked together or how you have managed to resolve some major issues in the past.
The investors make an investment in the business and in the people, who are to turn this business into a success. They need to know how committed to the company each and every member of the team is. They want to know that the team members will be there in the long run. This proves that they believe in the idea, they are ready to put their blood, sweat, and tears into the business because they see the true potential in it.
To be committed means that the members of the team understand the potential fundamentally, that will continue to be laser-focused even when the path gets rocky and will stay true to the main goals and business objectives.
Investor pitch tip: Highlight how involved each member of the core team is – who has left their stable job, who has put all of their savings in, who has mortgaged the house just to be able to work in the startup. Whatever you have sacrificed – mention it.