building teams that deliver results & investors
TRANSCRIPT
What matters most and when you need each member
BUILDING TEAMS THAT DELIVER RESULTS & INVESTORS
ROLES AND NORMS: WHO THE TEAM IS AND HOW THEY BEHAVE
Job Skills and Experience
Socia
l Beh
avior
s
Strong skills and experience + works
well with others
ROLES AND NORMS: WHO THE TEAM IS AND HOW THEY BEHAVE • Roles = responsibilities for deliverables divided among team
members, usually correlated to expertise and experience of individuals
• Norms = behaviors and dynamics governing interaction of team members
DEFINITIONS • Team = people contributing to product and its interface with
customers
• Investors = people / organizations supplying capital to enterprise in return for ownership
WHO IS YOUR TEAM?
Founder/ CEO
Employees
Management Team BOD
Advisors
Consultants
Investors
Suppliers
Legal (Corp. &
IP)
Insurance
SPECTRUM OF INVESTORS
Seed / Angels (F&F)
Series A Series B Series C… / IPO/ M&A
Private / Family office
Venture Fund
Strategic
TOP 5 THINGS INVESTORS CONSIDER • Need • Solution • Protection • Market, Investment and Return • Team
INVESTORS KNOW THAT THE MANAGEMENT TEAM IS MAJOR SOURCE OF RISK AND FAILURE • VC survey: 65% of failures within their portfolio companies due
to problems with the startup’s management team. • Investors report 61% of problems in their portfolio companies
involved issue within the team.
INVESTOR TEAM RISK MITIGATION • Work with people and teams with whom they had success (exits) • Work with people and teams they know • Work with people and teams that had success (exits) for others • Work with teams that have worked together before • Work with teams with lots of experience
NON-DILUTIVE FUNDING SOURCES
BUILDING A TEAM DILEMMA
TEAM YOU NEED DEPENDS ON:
Seed / Angels (F&F) Series A Series B Series C… /
IPO/ M&A
Where you are in product development
Where you are in fund raising
Concept generation
Proof-of-concept
First-in-man
Filing/ Approval
Market Launch
TEAM NEEDS BASED ON PRODUCT DEVELOPMENT STAGE
Concept generation
Proof-of-concept
First-in-man
Filing/ Approval
Market Launch
Medical need Technology solution expertise Market recognition
Product engineering Preclinical expertise Regulatory expertise
Market understanding Clinical expertise Manufacturing Quality
Supply chain Marketing Reimbursement
Pipeline Sales Finance
TEAM NEEDS BASED ON FUNDING STAGE
Medical expert* Technology expert* Market expert* IP attorney* *can be consultants, advisors, Board members, contractors…
CMO CTO CEO Engineering/ science team Preclinical* Regulatory* IP*
CMO CTO CEO Engineering/ science team Clinical team Regulatory IP* Manufacturing* CFO Quality Supply chain Marketing Reimbursement*
CMO CTO CEO Engineering/ science team Clinical team Regulatory IP* VP Manufacturing CFO Quality Supply chain Marketing Reimbursement* VP Sales
Seed / Angels (F&F) Series A Series B Series C… /
IPO/ M&A
TEAM TAKE-HOMES FOR INVESTORS • Experience matters
• Industry/ devices, investors, startups, covering all the bases
• Network matters
• Co-founders/team, investors, Board and advisors
• Success matters
• Prior marketed products, prior startup successes, prior exits
BENCHMARKING TEAM STRENGTH A structured approach to
RELATIVE MINIMUM TEAM STRENGTH FOR DIFFERENT INVESTORS & INVESTMENT STAGES
Seed / Angels (F&F) Series A Series B Series C… /
IPO/ M&A
Private / Family office
Strategic
Venture Fund
12 36 48 80 16 40 60 88 24 52 72 100
THE EARLY TEAM
START WITH FOUNDER CEO • Pick one as CEO:
• King • Famous • Rich
If you didn’t pick Rich, don’t seek funding You don’t have investors’ priorities
SCORING THE EARLY TEAM Founder experience
First time 2nd 3 or more cos.
0 8 16
Operating experience or MD experience
12 8
Investor relationship
Strangers Introduced Known – v. positive
0 4 12
Made money for an investor before For this investor before
12 20
Other team members
Regulatory Clinical (CMO) Consultants known
8 8 4
Product Development Commercial/ Market Advisor(s) known to investors Board members known to investors
8 8 4
8/ea
• MD - idea from practice experience (8)
• Does not know investors or angels (0)
• Other team members not from medical device industry (0)
• No well known advisors (0)
• GOING TO HAVE A DIFFICULT TIME
• Usual Solutions:
• Raise money from friends & family (12)
• Others:
• Outside advisors or Board members (4-8)
• Co-founders with industry experience (12)
• Executive with idea from industry experience (12)
• Knows investors (12)
• Other team members with clinical (8) and regulatory (8) medical device industry experience (tot = 16)
• Highly credible outside Board member (8)
• TEAM WILL MAKE FINANCING MUCH EASIER
HYPOTHETICAL FIRST TIME FOUNDERS
THE FUNDED TEAM
SCORING THE “A” TEAM Founder experience
First time 2nd 3 or more cos.
0 8 16
Operating experience or MD experience
12 8
Investor relationship
Strangers Introduced Known – v. positive
0 4 12
Made money for an investor before For this investor before
12 20
Other team members
Regulatory Clinical (CMO) Consultants known
8 8 4
Product Development Commercial/ Market Advisors known to investors Board members known to investors
8 8 4 8
Series A
SCORING THE “B” TEAM Founder experience
First time 2nd 3 or more cos.
0 8 16
Operating experience or MD experience
12 8
Investor relationship
Strangers Introduced Known – v. positive
0 4 12
Made money for an investor before For this investor before
12 20
Other team members
Regulatory Clinical (CMO) Consultants known Sales & Marketing Quality (QA)
8 8 4 8 8
Product Development Commercial/ Market Advisors known to investors Board members known to investors Manufacturing/ Supply Chain
8 8 4 8 8
Prior investor(s) Unknown 4 Highly credible/ well known 16
Series B
SCORING THE “C” TEAM Founder experience
First time 2nd 3 or more cos.
0 8 16
Operating experience or MD experience
12 8
Investor relationship
Strangers Introduced Known – v. positive
0 4 12
Made money for an investor before For this investor before
12 20
Other team members
Regulatory Clinical (CMO) Consultants known Sales & Marketing Quality (QA)
8 8 4 8 8
Product Development Commercial/ Market Advisors known to investors Board members known to investors Manufacturing/ Supply Chain
8 8 4 8 8
Prior investor(s) Unknown 4 Highly credible/ well known 16
Series C… / IPO/ M&A
NORMS Getting the best performance from your team
HOW THE TEAM BEHAVES
Job Skills and Experience
Socia
l Beh
avior
s Strong skills and experience + works
well with others
GETTING YOUR INNOVATION TO THE MARKET Who do you need to get the job done? Can you work together synergistically?
Can you inspire confidence in investors?
TEAM DEVELOPMENT MODEL
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Performance Impact
Team
Effe
ctive
ness
Forming
Storming
Norming
Performing
Why do some teams never perform?
How do some teams perform right away?
TOP 10 CHARACTERISTICS OF HIGH PERFORMANCE TEAMS
1. Participative leadership
2. Effective decision-making
3. Open and clear communication
4. Valued diversity
5. Mutual trust
6. Managing conflict
7. Clear goals
8. Defined roles and responsibilities
9. Coordinative relationship
10. Positive atmosphere
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INTELLIGENCE OF GROUPS Best teams have… • Members who speak in roughly the same proportion • Members are skilled at intuiting how others felt based on their
tone of voice, their expressions and other nonverbal cues
(Woolley et al, Science 2010).
PSYCHOLOGICAL SAFETY • A group culture with a ‘‘shared belief held by members of a team
that the team is safe for interpersonal risk-taking.’’ • Psychological safety is ‘‘a sense of confidence that the team will
not embarrass, reject or punish someone for speaking up.’’ • ‘‘It describes a team climate characterized by interpersonal trust
and mutual respect in which people are comfortable being themselves.’’
Amy Edmondson (Harvard Business School)
WHAT GOOGLE LEARNED FROM ITS QUEST TO BUILD THE PERFECT TEAM • Google’s data indicated that psychological safety, more than
anything else, was critical to making a team work. • Other important behaviors:
• making sure teams had clear goals and • creating a culture of dependability
New York Times, 2/25/2016
“Google’s intense data collection and number crunching have led it to the same conclusions that good managers have always known.
In the best teams, members listen to one another and show sensitivity to feelings and needs.”
New York Times, 2/25/2016
HOW TO HIRE FOR TEAM BEHAVIOR? • Behavioral interviewing
• Ask for stories about past challenges and how they approached them
• Examples of past behavior as part of a management team
• Present hypothetical questions about scenarios that involve team dynamics
• References
• Make sure reference checks review teamwork and managerial experiences, especially challenges when things did not go right
• Include people who worked with candidate but they did not provide
TEAM TAKE-HOMES FOR ENTREPRENEUR • Experience matters • Network matters • Success matters
Trust and respect matter most
MICHAEL J. WEICKERT
632 Sylvan Way
Emerald Hills, CA 94062
Phone (650) 568-6125
Cell (650) 218-1840
www.witcreek.com