Well, this came out of a comment on our fund announcement post. Someone asked, what do we mean by a great team. While it is almost impossible to provide a precise definition of the same, I would like to offer some things that we look for. Every team might not have all of them, but these matter (in no particular order):
- Hunger and passion, sense of purpose driving the specific business
- Relevant experience and execution capability
- Alignment of objectives – focus on scale, profitability and value creation/realization
- Team dynamics and ability to work together
- Leadership qualities such as driving change, hiring and developing top talent
- Value system match – Integrity, Intelligence and Intellectual honesty
I could elaborate on each of these, and that would make up a book. I do realize that I might have walked into a minefield with this, but feel free 🙂
Latest posts by Alok Mittal (see all)
- Promoters or Entrepreneurs – A choice for Private Equity players - August 3, 2019
- Startup Marathon Mindset - March 25, 2019
- What’s your Customer Culture? - March 4, 2019
0
Guneet – I am somewhat of a sucker, but not totally – wont fall into specifying a formula here 🙂 By composition, if you meant coverage of key skills for the company, I do think that the market facing piece is very important – how does the team even know they are solving the right problem? Other pieces can come in over time.
Virat, Rehan – I am not sure if labeling MNC or Ivy league helps – I dont know if either of those is correlated with venture success (I would definitely be interested in finding out). However, I remember that some of the large companies in India used to look at class X and XII score for recruiting people – how is that relevant, I asked – and they said it demonstrated diligence. Having excelled at something in life might be an interesting indicator to one’s drive and commitment – might be studies, might be sports. I see a person who says “i have never accomplished anything in life, but I am very innovative” and I go ahem!
unknown entrepreneur – good move to go anonymous – I know what is nsn – have friends there 🙂 that was why I was surprised when the initial post came from nsn email id,
Alok, do elaborate on each and write a book 🙂 It would be an interesting read.
I think another need is to have a complementary team i.e. a team with complementary skill set.
In our team, I am a CTO, I need Chief Sales Officer for example
Alok
Go to nsn.com to see what it is 🙂 🙂
Someone once pointed out that the only pre-revenue projects that got funded were teams of Ivy backgrounds. Would it be fair to say that education seals your fate for the rest of your life?
I have one interesting point for investment firms.
Investor wants high profile guys from MNC to lead their investment. Imagine two guys in front of you.
Scene 1:
One who was looking for MNC job in campus after engineering. Second guy who refused MNC job for personal R&D. Investors would prefer MNC guy. It is safe to invest on him.
Scene 2:
MNC guy is earning 8 to 12 Lach CTC. Rebellious talented guy left 4 jobs in 2 years ranging CTC of 4 to 5 Lach. Reason is simple he can’nt fit inside copy-cat world where things are copied. Innovation word is used for copying others work smartly in MNC. But VC would prefer quick copying machine. Coz it is safe.
Scene 3:
Cocktail parties, collection of huge medicore with greedy MNC guy would be best fit for next MNC. But pure innovater has to wait for 3 hours to get appointment from same MNC fools.
“Generally MNC tagged guy with high contacts, fast innovation copying skills and finally better theif is hugly needed”
(MNC is word used by me. It has much deeper meaning)
Now really what happens infront of our eyes. Few underdogs with pure innovation build real innovative companies. Those companies are truly rejected by VC firms and major investors as sick ideas and sick people. Those companies really make big where money is not motive to start company. It is simple human curosity to solve problem rather then big business plans and long board meetings. It is like child’s vision to the world, which is not confused in figures, parties, contacts, PR’s, percentages and discussions.
I think we need to keep things simple and clear to make success for all. It is purely based on love for our work.
Lastly one question which amaze me a lot. Do really VC choose their job as passion or just to make more money. If they choose because of money then MNC guy is best fit for them.