You often hear venture capitalists say that when they hear a pitch they are more interested in the team that will execute on the idea than in the idea itself. Meaning, that yes the business has to be a good one, however, investors are more interested in who is part of the team and how the team will work together in order to launch the business successfully.
Why is it so important for venture capitalists to know the makeup of the team in order to invest in an idea?
People often say: everyone has an idea in the back of their head but only some act on their ideas. And the ones that act on them have a chance of turning their ideas into an actual successful businesses.
For an idea to translate into a successful business the following must happen:
Since the people working on the idea are such an important component of the idea becoming a successful business, it is obvious why venture capitalists are most motivated by the people involved in the idea.
The same is true for any organization. For an organization to be successful the following must happen:
What should organizations do to make sure that they have the team that any venture capitalist would want to bet on?