1 min read No one wants to invest in a startup that is doomed to fail; enter: Team Due Diligence.
“What we hope ever to do with ease, we must learn first to do with diligence.”
– Samuel Johnson
Performing the proper Team Due Diligence is an essential part of the investing process. The most critical factor in that process is understanding the startup’s team.
Since a startup has only a developing product and perhaps some intellectual property, digging into the team is an excellent indicator of its potential success. It can be your number one key to understanding if the business is worth your investment.
Here are some things to look for when doing your team due diligence:
Team Resumes. Look at the resumes of those who are prospected to join the team when funding becomes available. The CEO should know who they are planning to bring on once they have the funding.
Domain Knowledge. Who has the expertise, and how current is it?
Complementary Skills. Do they have a team member with sales skills? Is there someone who is going to develop the product? Is there a member with people management skills who can grow the team?
How long has the team worked together? Ideally, the team has some experience working with each other. The more time they’ve had together, the better.
Hall T. Martin is the founder and CEO of the TEN Capital Network.TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: email@example.com