Cayenne Consulting

What Do Investors Look For in a Startup’s Team?

Netscape Time: The Making of the Billion-Dollar Start-Up That Took on Microsoft

Every investor is looking for the “dream team” of executives to put his money on – somebody like the next Jim Clark. Often I find that experienced investors flip to the management page of a business plan, even before they read the product description. That’s how important the people are. What are investors looking for in the CEO and the rest of the top executives?

What if you can’t convince Jim Clark (Silicon Graphics, Netscape, WebMD, MyCFO, Juniper Networks) to run your startup? The most common solution is that you “bootstrap” your business, or fund it yourself, at least to the point that your “traction” is evident (you have a product, you have customers, you have revenue). Another alternative is to rely on that famous first tier of investors, called friends, family, and fools.

Everyone loves that dark horse who comes from the rear to lead the pack and win the race, but very few people will bet on him up front. But don’t let that discourage you. Even Jim Clark started as just another associate professor of electrical engineering, but he teamed with some bright people, and proved he could beat the odds.

If you don’t have the credentials today, team with someone who does. The strength of your idea alone won’t suffice to bridge the funding gap. There is no substitute for experience and mentoring. The quicker you get it, the sooner you can be the next Jim Clark and write your own check.

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