Startup Funding

Related Guides

Trending

The most popular articles on Startup Funding in the past day.

How to Diligence the Team Behind the Tech

5 min read  How to Diligence the Team Behind the Tech Assessing leadership readiness, decision velocity, and team adaptability as predictors of scaling success. Technology attracts attention. Code demos impress. Product roadmaps inspire. But companies don’t scale solely because of technology. They scale because of the people making decisions behind it. Professional investors understand this: great technology in the hands of an unprepared team rarely survives growth. Meanwhile, capable leadership can iterate, pivot, and rebuild even when the first product misses. When evaluating early-stage opportunities, diligence is not a soft exercise. It’s a predictive one. Below is a practical framework for assessing leadership readiness, decision velocity, and adaptability, the core traits that determine whether a team can scale what they’ve built. Leadership Readiness → “Are They Built for the Next Stage?” Founders often succeed at starting companies. Scaling them requires a different skill set. Early-stage leadership is about creativity and hustle. Scaling-stage leadership is about structure, delegation, and capital allocation. The key question: Is this team prepared for the company they’re trying to become? Pressure-test: Have they hired executives before, or only individual contributors? Do they understand financial drivers beyond product development? Can they articulate a 12–24-month hiring roadmap tied to milestones? Have they operated through a prior growth phase, or only early formation? Strong readiness signals look like: Clear recognition of their own capability gaps Defined role ownership across leadership Thoughtful sequencing of hires Comfort with accountability and reporting structures Red flag: “We’ll figure out management when we get there.” Scaling punishes improvisation. Leadership maturity reduces operational drag before it compounds. Decision Velocity → “How Fast and How Well Do They Decide?” In scaling companies, speed is a strategic weapon. But speed without judgment is volatility. Decision velocity isn’t just about moving quickly. It’s about moving decisively with incomplete information—and learning from outcomes. Evaluate: How long does it take them to prioritize? Do decisions require consensus—or is authority clear? Can they explain past pivots in terms of logic, not emotion? Do they track the outcomes of major decisions? Strong velocity signals look like: Documented decision frameworks Defined escalation paths Willingness to kill underperforming initiatives Evidence of rapid iteration cycles Red flag: Endless debate disguised as collaboration. Markets move. Competitors adapt. Capital runs out. Teams that cannot decide under uncertainty create internal bottlenecks that stall growth. Scaling companies don’t fail from a lack of ideas. They fail from decision paralysis. Team Adaptability → “Can They Evolve Without Breaking?” Every growth stage introduces friction: New customer segments New compliance requirements New pricing pressures New competitors The team that built version 1.0 may not automatically be the one to build version 3.0. Adaptability is the ability to: Reallocate resources quickly Replace underperforming leaders Adopt new systems Accept external expertise Pressure-test: Have they pivoted before? Did they blame the market, or analyze their own assumptions? Are they coachable? How do they respond to critical board feedback? Strong adaptability signals look like: Transparent post-mortems Iterative roadmap updates Openness to external advisors Recruiting talent stronger than the founders Red flag: Attachment to original vision at the expense of evidence. Technology evolves. Markets shift. Investors change expectations. Teams that treat adaptation as weakness often collapse under scale pressure. Talent Density → “Who Do They Attract?” Strong leaders attract strong operators. Examine: Early key hires, are they high leverage? Retention of top contributors Clarity in organizational design Cultural alignment with performance expectations High-talent teams show: Intentional hiring, not opportunistic Clear performance metrics Fast removal of misaligned hires Leadership depth beyond the founder Red flag: Overreliance on one visionary individual. Scaling requires distributed competence. When decision-making, product insight, and customer relationships concentrate in one person, fragility increases. Alignment Under Stress → “What Happens When Things Go Wrong?” Every scaling journey encounters setbacks: Missed revenue targets Delayed product releases Capital shortfalls The real diligence happens in how teams describe difficult moments. Listen for: Ownership vs. deflection Structured problem-solving vs. emotional reaction Cohesion vs. internal blame Strong stress signals look like: Shared accountability language Clear corrective action plans Data-driven explanations Confidence without denial Red flag: Narrative revisionism. Teams that rewrite history rather than analyze it repeat mistakes at scale. How These Factors Interact Leadership readiness without decision velocity creates bureaucracy. Decision speed without adaptability creates reckless pivots. Adaptability without alignment creates internal churn. Investors aren’t looking for perfection. They’re looking for: Clear growth awareness Defined authority structures Evidence of learning Capacity to recruit beyond themselves Resilience under pressure Technology scales when leadership scales with it. Why Team Diligence Outperforms Product Diligence Products change. Markets evolve. Models iterate. But leadership patterns tend to persist. A disciplined team: Improves weak products Adjusts pricing Finds distribution Raises follow-on capital An undisciplined team: Burns capital faster Creates internal confusion Resists oversight Blames external factors When technology fails, strong teams rebuild. When teams fail, technology rarely saves them. Final Thoughts Diligencing the team behind the tech is not about personality fit or charisma. It’s about operational indicators of scaling readiness. Ask: Are they built for the next stage? Can they decide under uncertainty? Will they adapt when conditions shift? Do they attract and retain talent? Do they hold alignment under stress? The strongest predictors of scaling success are rarely in the demo. They are in the decision patterns, hiring discipline, and leadership maturity of the people running it. Technology may open the door. Leadership determines whether the company walks through it. Want structured team-diligence scorecards, leadership assessment templates, and scaling-readiness evaluation tools used by experienced investors? Join our investor community for practical frameworks designed to help you underwrite teams, not just technology, and invest with greater clarity and conviction.

Company Spotlight: CancerGene Connect

Richard Burghardt wasn’t walking into the unknown when he grabbed onto the opportunity to shake up the genetic counseling world with CancerGene Connect – in his younger years he’d spent long hours in the laboratory with his father, who was a reproductive cell biologist. “I was comfortable in that world, at least I knew enough to have intelligent conversations,” said Burghardt, whose previous business move was starting software company that spawned the Charade Date app that sought to apply DNA technology to the dating world. “The software company was already in place.” The new company is CancerGene Connect, which uses technology and processes created by and licensed from the University of Texas Southwestern that allows a patient to assemble their family medical history on a secure online platform. The goal of that step is to apply predictive analysis to discovering inherited diseases early, which can help overworked genetic counselors treat the most risk-prone patients early ahead of the normal one-year wait time. Burghardt said CancerGene Connect is has just over a dozen account currently active in something of a beta test phase, including two pilot programs in divisions of two of five largest hospital systems in the country. A $700,000 seed round that helped the company form in 2015 has let the Dallas-based operation get its platform operating the way that can best serve the market. A $1.5 million round that Burghardt is starting to assemble now will help the company begin a sales and marketing push into both small specialist sites and large hospital groups and not cede any ground to the three competing companies in the field. While the genetic counseling field is a small one that has let CancerGene Connect find early validation, there is large growth potential in general cancer detection and treatment, along with cardiovascular and metabolic diseases that can similarly cause chronic illness with expensive treatment costs. There is also a forecast for robust business in breast imaging and MRI centers, with client sites paying for the service that patients are then able to fill out online. The sales push will see CancerGene Connect grow to around 15 employees from its current six by the end of 2017. Burghardt said the company’s real growth opportunities will come from adding more hospital groups to its customer base and expanding from the pilot programs it is currently holding in major health care systems. “Someone like an office for a single breast surgeon we can go in there and then be live in 30 days, but that’s just one account,” he said. “Selling to hospitals has a lot more steps because there are so many things they have to be careful about with security of patient information. Early on, we’d do a (Hospital group) demo that went great and I’d expect to have the money rolling in, but now it’s a year later and we’re still getting the deal closed.” Looking longer term, Burghardt said there are business opportunities in leveraging the aggregated patient data the company will have the ability to compile, but said it will take years of business at many more sites to obtain that much useful information.

Top 20 Investors in Drones

Drones continue to attract investor interest from venture capital, corporate VCs, and other funding sources.   Here’s the list of the top drone investors by number of investments.  While VCs dominate the investing category by dollars, angels, and accelerators account for a large number of funded deals. Investor Name Investor Type Number of Investments Sequoia Capital Venture Capital 1,303 500 Startups Accelerator 1,279 Y Combinator Accelerator 1,197 New Enterprise Associates Venture Capital 1,187 Accel Partners Venture Capital 991 Techstars Accelerator 652 Lightspeed Venture Partners Venture Capital 516 Battery Ventures Venture Capital 503 Andreessen Horowitz Venture Capital 493 General Catalyst Partners Venture Capital 465 Startupbootcamp Accelerator 370 Union Square Ventures Venture Capital 217 Social Capital Venture Capital 190 Sherpa Capital Venture Capital 115 GE Ventures Venture Capital 112 Peter Thiel Angel 92 Xiaomi Venture Capital 18 Daimler Corporate Venture Capital 16 Cognizant Technology Solutions Venture Capital 3 DJI Venture Capital 2

Site Map

Scroll to Top