PEOPLE

People are the primary building blocks of a company and assembling a team is the most difficult part of the entire startup process. Investors and customers will all want to know who has staked their reputation on the success of the company. The management team, advisors, directors, employees, and others dedicated to the startup must inspire confidence, not raise doubts. While VCs may shore up a weak team by recruiting experienced management, it is far more common for VCs to pass on companies who don't already have competent people.

When evaluating people, consider the following:

• What skills and knowledge do they have?
• Where were they educated?
• For whom did they work and in what capacity?
• What professional accomplishments reflect on their ability to contribute to your company?
• Do they have integrity?
• What is their personal and professional reputation?
• How well do they work under pressure?
• Are they motivated, and what are their motivations for joining the company?
• How well connected are they?
• What is their experience with startup companies in this industry?
• What will be their role within your company?
• Will they be dedicated to your company?

Consider whether you would want the person to join as a founder, employee, director, scientific advisor, or member of the management team. It is difficult to draw distinctions between some of these roles. Having the interviewing skills to identify suitable candidates is critical.