Great article. VCs need to remember that all entrepreneurs are different and hence have different weaknesses and different strengths, so a key factor is both accepting and embracing that as a VC and then maybe allowing themselves to submerge themselves in day to day operations with said entrepreneur – at first, merely as an observer. This would give a VC great insight to how their entrepreneurs work best – and then they would know better how to support them.

#1 point, VC & entrepreneur connection”Stop the PowerPoint trail and instead spend an hour with the entrepreneur” = #1 imho;#2 point, Execution”The success or failure of the company is based on execution”, agree 100%;”strong management team”, define it, pls;With regard to “implement a brilliant idea”, if it's executed brilliantly, it's the problem of the team, not the idea itself, is it?Thanks.

Hi knowledgenotebook. Thanks for the feedback.I defined “strong management team” as follows:”You want a team that is honest, competent, and hard-working. A team with a proven track record that’s comprised of individuals who have known each other for a long time and who value their name much more than any monetary compensation.”It's said that the perfect team is a team of “three musketeers” as follows:(1) the visionary – this is the team member that comes up with the great ideas;(2) the executioner – runs the show (CEO);(3) the technical genius – typically the VP of R&DHope I answered your question.Tomerhttp://www.zoara.com

Tomer,First, let me correct a typo, “if it's executed brilliantly,” should have been “if it's not executed brilliantly,”"casualty” of speed.Thanks for sharing your thoughts.I like the “three musketeers” notion, however, in the real world such scenario may be hard for certain entrepreneurs, think of single parent as an analogue, then what, the entrepreneur has to wear many hats and be able to switch them quickly. A key issue in my experience is that other stakeholders (over 90%) would never put themselves in your shoes, it's the reality. The good thing is, there are people who simply are kind and wonderful, then you honestly tell them your thoughts, and some of them may have the willingness and capacity to chip in…Don Li

great post tomer.couldn't agree more about the powerpoint trail. unfortunately I can't say that it's a symptom which plagues associates alone – i've seen many a partner bilnded by the inherent paper-trail culture. Of course PPTs and excels serve their purpose – transparency and projections are critical – but your point is right on – spend some time with us, ask us “how” questions rather than “what” questions. my best (and most pleasant!) successes have been with VCs who have strayed from this grandfathered tradition.

Hi Don,If I understand you correctly you’re saying that the Three Musketeers principle isn’t realistic in all entrepreneurial situations, depending on the size/capacity of the company. You’re right, it isn’t. Oftentimes the CEO (or whoever’s “boss”) is the visionary, the techie and the organizer all in one. It is entirely possible for a company to succeed if one person is wearing all these hats, yet in my experience it is a matter of time before that individual’s endurance, which is equivalent to the company’s longevity, is going to be compromised. All too often I have seen a great idea fizzle because the “single parent” isn’t supported by that very team I’m referring to (or some other combination of a supportive team). There are of course many factors, including poor top-level management, lack of funds, personality clashes, or as you mention, poor “luck” – where are all those simply kind and wonderful people? These factors and circumstances don’t always allow for the Three Musketeers principle to rule, but in my experience if there’s room for at least all three, it is a winning combination.Again – hope I understood your question/comment correctly.Thanks,Tomerhttp://www.zoara.com

Tomer,Yes, your understanding of my comment is right on. The Three Musketeers team is an ideal team, which both increases success rate and shortens time to success. And when it's not available, the “single parent”/”solo warrior” scenario emerges, being brilliant simply isn't good enough for him or her if so blessed, he/she would have to have the endurance as you so appropriately put it, and the will and some luck (once again you're right), and maybe more…Thanks.Don

Sorry I completely disagree with article. Please stop educating these Vulture Capitalists. They are just glorified Wall Street Momentum traders. You are wasting your time.We've a brilliant idea, a team who has executed well in previous companies (unfortunately no one is worth > $5M) and also have ALL the endless data slides. Our experience dealing with at least 5-6 high profile Sand Hill VCs is exactly opposite. We are asked endless rounds of powerpoint slides, VCs do name droppings as if they created the world, do not ask right questions, do not want to know the work or life story. Instead they want to invest in1. Latest fad – like Social Networks (tough luck finding Facebook), endless crappy gaming companies (tough luck finding next Zynga)2. Famous entrepreneurs who are either ivy league educated without having worked for any real startups or super rich people..3. Later stage of the company when you are cash flow positive. Why should I come to you if I am making money?No wonder their returns will look like treasury bonds yield and no wonder entrepreneurs like us with fundamental innovation go to corporate VC money from the likes of Google, Intel, Verizon, Cisco etc…

Thanks for sharing your perspective. I have (what I think) is a very interesting product idea in an area where I have 10 years domain specific experience in design and product management. I am wireframing/prototyping now to get the idea out of my mind, into pixels. I hear you when you say the value is in the team. right now, it´s me. I am not ready to sign up other co-founders. Is the team (internal team or outsourced) required to build and launch this product the same as the group to manage an ongonig business concern? too early to place that bet.A great programmer isn´t necessarily a CTO. Somebody that does marketing for launch isn´t always a CMO. and the office manager for a 5 person startup isn´t a COO. and who knows, maybe i´m not the long term CEO, but rather head of product.Any tips on how to navigate this founder without co-founder situation?

Good Fella,I completely hear you. Over the years I too have been subjected to the endless round of slides, wrong questions, etc on too many occasions. That’s exactly what inspired me to write the post. Yes, unfortunately “Hype-Investing” and “Herd-Investing” are the dark side of the otherwise intriguing VC world. Hype-investing, as you mentioned, is the impossibly frustrating investing in the latest fad; what was once clean-tech is now social, which will soon enough be null and void and give way to the next wave. Great teams with brilliant ideas are sadly overlooked in the shadow of the hype, which means that teams like yours are passed over in the paper trail, when the paper trail itself was pointless in the first place.Herd-investing – your points 1 and 2 – is another disappointing but true reality. Unfortunately it’s quite hard to get that ship sailing. So yes, I agree with you because I am all too familiar with the blood, sweat and tears entailed in the entrepreneur-side of the VC battle. On the other hand, however, when it’s VC time and you know that’s the best thing for your company right now – like a good parent, you do whatever it takes to help your people grow. Best of luck to you.

Seth,Thanks for your very relevant point. It is entirely true, as you mention, that the team required to build/launch is not necessarily the same team that will manage the ongoing business. There are countless possible scenarios here, and the Three Musketeers dynamic is, in my experience, an option for both the start-up as well as the ongoing business. A company might start as a one man show, with a team at one year post-incorporation that isn’t identical to the post-three year team. There is no one single management dynamic that is “right”.In regards to tips on how to navigate, it would be difficult for me to do without any details/background info. I’d be glad to hear if you care to share.