Invention to Venture（四）.pptVIP

Summer/Fall 2005 Grayhead Associates- Copyright 2005 Section 4 Building the Team: Finding the Right Friends  Definition of a Team Group of individuals who have the SAME GOALS OBJECTIVES and will work toward those ends. Advantage of a Team A team brings more: Talent Resources Ideas Professional contacts Most importantly, it’s the psychological support each can offer one another. Why Build a Team? What do investors invest in? “A” team and a “B” product vs. “B” team and an “A” product Foundations for Building the Team Why are you doing this? Who are your partners? What motivates your partners? Who is managing the company? Exit strategy? New Ventures Have a High Propensity to Fail Reason: The liability of newness The team can’t adjust quickly enough to their new roles and because the firm lacks a “track record”. A Solution: Assembling a talented and experienced team that can overcome these limitations. The Founding Organization Founder(s) Their early decisions have a significant impact on the manner in which the new venture team takes shape. Size of the Founding Team 50% - 70% of all new ventures are started by more than one individual. As a result new ventures started by a team rather than a single entrepreneur have a greater probability of success. Five major components of the team Management team Board of directors/advisors Mentor(s) Service providers Investors Developing the management team Add skills to the mix as needed Outsourcing and/or part timers can work well at the beginning Your investors, boards, advisors, mentor can help you find the right people Management team Diversity is good business: technical, sales/marketing, and management/business Pick your team with great care Character, values, and commitment count Dynamics of a team 4 Personality Types Drivers Influencers Steady Conservative Characteristics of Founders Success factors for a founder’s success: Higher education Prior entrepreneurial experience Relevant industry