It is a harsh reality that whilst many entrepreneurs believe that their idea has huge value, investors only really care about the team.
Why is that?
Simply, all startup ideas are easy (nearly always) to copy and most often fail because either the idea wasn’t so hot after all, or because the team fails to execute effectively.
To be clear, most successful startups pivot their plans twice in their earlystage life. Hence, this isn’t just about following a preset plan. It is more about waking up each morning and building a better plan…
…and that is why the team counts. Some teams can do this – and have a half decent hope of survival and success. Whereas, other teams can’t do this and will almost certain fail – even if they start with the best idea in the world.
That is why investors care more about the team than the idea.
Of course, a team without an idea doesn’t have any value either – but it is critical to startup success to see that the value of an original idea is…. well, not much.
In our accelerator, we value the original idea at between 5 and 10% only. The rest is divided up among the team that executes the plan (and rebuilds the plan (and reinvents the idea)).
We take the view that without excellent execution (which is the hard bit) the idea never becomes a product. Equally, a successful business is able to create a pipeline of successful products – executed brilliantly, of course.
This is why the investors care about the team – they want a pipeline excellent products that sell profitably – they don’t just want one man’s inspiration – no matter how good that might be.