Building an Entire Investable Team: An Entrepreneur’s Perspective

The  Capital  Network  

July  10,  2013  

Win  Burke  

President  &  CEO  

iGetBeBer,  Inc.  

Topics  

•  The  Management  Team  •  The  Board  of  Advisors  •  The  Board  of  Directors  •  Board  –  Management  Team  Dynamics  

I  agree  with  Bob’s  comments  and  will  not  repeat  his  content,  but  rather  will  augment  them  from  an  entrepreneur’s  perspec@ve.  

Bob  and  I  agree  that  there  is  no  single  right  way,  and  there  are  many  possible  right  ways  depending  on  circumstances  and  the  specific  people  involved.    Offered  for  considera@on  are  generali@es,  to  which  there  are  many  excep@ons,  but  which  represent  a  framework  for  implementa@on.  

The  Management  Team  

First  my  own  experience…  

•  Early  Career/Midsize  and  Large  Companies  – Computer  Scien@st/SoMware  Engineer  

– Product  Management,  Marke@ng,  Sales,  Services  

•  Early  Stage  Company  Career  –  iGB  is  my  7th  early  stage  company  – A  founder  of  3  – VP  of  S&M  of  2,  CEO  of  5  – 4  companies  acquired,  1  IPO  

(Have  made  many  mistakes,  hopefully  learned  not  to  make  them  again)  

What  I  have  learned…  

•  Investors  invest  in  a  team  first,  then  product/market  – Mix  of  vision  and  experience  – Good  team  chemistry  

•  Clear  roles,  who’s  in  charge  •  Best  if  have  worked  together  before  

•  Be  credible  to  investors  that  team  can  execute  – Sales,  CFO  should  be  experienced  – Complete  team  

•  If  not  complete,  VCs  may  suggest  fill-­‐ins  

What  I  have  learned…  

•  “Bump  in  the  road”  capable  – Flexible,  resilient,  adap@ve  when  things  go  wrong  – Can  absorb  personal  financial  constraints  

•  Impact  of  team  experience  – Angels  are  more  likely  to  accept  “young  and  fresh”  – VCs  are  more  likely  to  want  to  know  that  team  can  execute  •  VCs  prefer  repeat  entrepreneurs  (“been  there,  done  that”)  •  Kaufmann  Ins@tute  study  says  that  entrepreneurs  over  age  of  55  have  2x  success  

The  Board  of  Advisors  

What  I  have  learned…  •  Industry  luminaries/experts  who  believe  in  you  signal  to  investors  that  you  are  real  – Signal  to  customers  and  partners  as  well  – Fill  in  industry  holes  of  management  team  

•  Industry  knowledge,  experience,  contacts  (!!!)  – How  to  recruit  

•  Remember  that  they  may:  – Tend  to  feel  comfortable  with  what  they  have  done  rather  than  what  could  be  done  

– Have  conflic@ng  egos/agendas  (important  to  manage  group  dynamics)  

The  Board  of  Directors  

What  I  have  learned…  

•  A  func@onal  Board  is  an  asset,  a  dysfunc@onal  Board  can  be  a  fatal  liability    (change  it!)  

•  Try  to  choose  (may  influence  choice  of  investors):  – A  mix  with  opera@onal  as  well  as  financial  experience,  preferably  within  your  industry    

– Experience  with  Boards  and  how  they  should  work  – Can  work  together  collabora@vely  instead  of  confronta@onally;  good  chemistry  and  dynamics  

– Not  all  in  lock-­‐step,  but  generally  on  the  same  page  – How  to  recruit  

Board  –  Management  Team  Dynamics  

What  I  have  learned…  

•  Trust,  communica@on  are  essen@al  – Communicate  oMen  and  transparently  

– But,  don’t  communicate  every  problem  •  only  those  that  stay  problems,  need  assistance,  or  are  of  fiduciary  import  

•  Management  team  should  agend  Board  mee@ngs  – Need  exposure  to  Board  for  two-­‐way  trust  

•  But  can  be  shocked/demo@vated  by  frank  Board  discussions  

– Present/discuss  their  part  of  the  business,  but  not  stay  for  internal  Board  discussions  

Thank  you!  

QuesSons?