Points for teams looking for investment
The findings of Intramezzo’s recently launched Talent Capital Report reinforced the fact that investment is intrinsically linked to the quality of a venture’s leadership team. So how can today’s entrepreneurs use this knowledge to ensure their talent strategy is well-aligned with investors’ objectives?
- Ensure the venture has a backable CEO
Given investors’ focus on this role specifically, make sure the CEO is highly backable. This means he or she is a good leader who can carry the rest of the team with him or her, can articulate the company’s vision succinctly and with conviction, understands the market inside out, is outward focusing and spends a lot of time with customers (potential or existing) and is open to constructive feedback.
- Have a talent roadmap
Work out potential skills gaps in advance of seeking investment. While investors will do their own due diligence and checks, demonstrating an awareness of the team’s current strengths and weaknesses, as well as a plan for what might be needed in future, is a good signal to investors that the management team is managing talent effectively. This process can also help identify whether some of the funding raised should go towards strengthening the team.
- Understand the differing objectives of investors
VC investors are seeking financial returns; CVCs, while they may provide a new and ready market for your technology as well as personnel and R&D support, do have more strategic objectives. As Paul Morris of UKTI says: “Ask yourself why a $60bn corporate would put money into a $2m investment – the financial return wouldn’t move the needle so you need to be comfortable with the strategic aims of the investor.”
Click here to read the Intramezzo Talent Capital Report in full.