Equity Club

Issue No. 62 - December/January 2011

‘A’ Team is what VCs are looking for

by Conor McKenna

Businesses. People. Markets. Venture capitalists ideally invest in ‘A Teams’ of great people focused on building businesses in big markets.

That being said, VCs will sometimes invest in great people focusing on what may be a so-so market and, less rarely, on a ‘B Team’ which is addressing a market with a lot of potential.

According to Darlene Mann of Silicone Valley VC firm, OnSet Ventures, each VC firm - and each partner in each firm - will have their own profile for ‘good’ deals. As a rule of thumb, she suggests that an interesting VC deal combines three or four of the following ideal qualities:

• Consists of one or more great people.

A great or A-grade team consists of people who are both uniquely suited to prosecute the proposed business and match the aggressive, risk-taking profile of an entrepreneur.

If the company is very early stage, an investor may bet on the ability of just one person to act as the founder and attract a high...

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