What investors look for in startup management team?

Many investors and lenders feel the quality and experience of the management team is one of the most important factors used to evaluate the potential of a new business. In fact, it is the first thing that many investors look at in the pitch deck before even looking at the problem or market size or the USP. Key questions that need to be answered are:

  1. Who are the key leaders? What are their experiences, educational backgrounds, and skills?
  2. Do your key leaders have industry experience? If not, what experience do they bring to the business that is applicable?
  3. What are the key positions that need to be filled in immediate future?
  4. Have the founders worked together earlier?
  5. Do the founders complement each other in terms of skills and business functions?
  6. How strong is the advisory board?
  7. Do the founders have prior entrepreneurial experience? Any successful exists?
  8. Is this team the best team to lead this venture?
  9. Do the key people in the team have sufficient stake in the company to keep them motivated?
  10. Are the founders fully committed / personally invested to this venture or they are doing anything else?
  11. How passionate are the founders about this venture?

It will be too much information to put in the Management Team slide of the pitch deck, but at least a part of this can be mentioned in the team slide and the rest explained while pitching in person to the investor.

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