Can you get venture funding without a strong team?

Question

I have been working with this guy and we are potential partners but I dont know if I want to work with him now. He however has a good backround that investors will take notice to. I don't, as I am fairly young, but I do have a great and very detailed business plan and idea. I would rather hire this guy to be on my management team, than have him as my partner. The specific venture firm that I am considering sending my executive summary to, said that once it invests it will help you company with "Building management teams". But I thought you had to have a strong management team before you get funding? Can you get funding without an already established management team? Can they help you assemble management once funded? This is an early stage/seed capital firm by the way.

Answer 1

In direct answer to your question I would say no!

However this only relates to my own experience in the way I opened my own company by proffering my already built team (complete) to the investment company and negotiating with them with the team as the prime asset of the company. The business plan was second to that.

They observed that all the team were qualified in their own respects and capable of supporting me and the plan I proposed. The team were and are with me in full confidence with my proposals. This being so I cut the investors into my company with a 50% shareholding which sounds odd but it's a Japan/Euro deal and they like it that way.

See if your business friend will settle for a share of stock over time and accept a General Management position which still gives you calling the shots in respect of your plan and the administering of it through him to the team.

I would be wary of the investment company promising to build or assist in management teams in the future. If as I said you already have your prime team sorted out with full capability then that is what you should be selling in company with your plan.

Investors will feel that you have covered the bases and their money is protected. They are probably looking for further tax right-offs by offering you more systems than you need in the future regarding management team building etc but that is dependent on the scale of your business.