Hey, future investment tycoons! Whether you’re gearing up to be the next Warren Buffett, a Shark Tank prodigy, or just someone who wants to turn their coffee budget into a Tesla fund, welcome. Let’s talk about something that can make or break your investing dreams: teams. Yep, those mysterious groups of people behind every startup pitch deck and snazzy logo. According to David Frankel, a top-tier venture capitalist (and all-around business wizard), spotting teams that deliver is the secret sauce. Here’s how to do it, and don’t worry, no MBA required.
1. Look for the “Captain Planet” Factor
Remember that old cartoon where five kids combined their powers to summon Captain Planet? (Google it, it’s worth a nostalgia trip.) That’s what a killer team looks like: a group of people with complementary skills that blend perfectly. David Frankel swears by this.
You want teams with a mix of talents: the visionary, the tech whiz, the marketing guru, the numbers nerd, and maybe a wild card (because chaos is sometimes productive). If everyone’s a visionary with no one to handle the nitty-gritty, that startup’s future is shakier than a Jenga tower at a college party.
Investor Hack: Check LinkedIn (aka Business Tinder) to see if the team’s skills balance each other out. If their profiles scream “overlap,” it’s a red flag.
2. The “We’ve Been Through Some Stuff” Test
Frankel says great teams often share one thing in common: they’ve been through tough times together. It’s like dating, you don’t know if it’s real until you’ve argued about IKEA furniture assembly.
Look for teams that have worked together before or have stories about overcoming adversity. Maybe they launched a flop of a product and came back stronger, or maybe they survived an office Christmas party gone terribly wrong. Resilience isn’t just inspiring; it’s profitable.
Investor Hack: During pitches or research, ask, “What’s been your biggest failure as a team, and what did you learn from it?” If they freeze like a Zoom call on bad Wi-Fi, think twice.
3. The “No Drama Llamas” Vibe
Frankel’s golden advice: great teams are low-drama. Nobody wants to invest in a startup that feels like an episode of The Real Housewives of Silicon Valley.
Pay attention to how team members interact. Do they respect each other? Do they actually listen, or are they all just waiting to talk? A team with good vibes is like avocado toast: trendy, but also essential.
Investor Hack: If you’re at a pitch meeting or networking event, watch for subtle body language. Are they side-eyeing each other or finishing each other’s sentences? The latter is what you’re after.
4. The Obsession Factor
Frankel has this uncanny ability to sniff out founders who are obsessed with their mission. Like, won’t-shut-up-about-it-at-brunch obsessed. These people don’t just want to make money (though, let’s be real, that’s part of it); they want to change the world.
If the team’s passion feels real, like, midnight-coding-session real, that’s a big green flag. If it feels rehearsed, like an influencer’s third take of a “just woke up” selfie, run.
Investor Hack: Ask what inspired the founders to start their company. If their eyes light up like Times Square, you’ve got a winner.
5. They’ve Got Receipts
No matter how much passion or teamwork a group has, Frankel reminds us that at the end of the day, results matter. Look for teams that have a track record of delivering, even if it’s in small ways.
Did they successfully launch a beta product? Secure some solid partnerships? Convince their parents to stop asking, “When are you getting a real job?” Wins are wins, and you want a team that knows how to rack ‘em up.
Investor Hack: If the team’s deck has actual metrics, growth rates, user numbers, revenue streams, they’re serious. If all they’ve got is buzzwords and stock photos, keep your wallet closed.
6. The “Gut Check” Test
Finally, trust your instincts. Frankel is big on this, sometimes, you just know when a team is going to crush it. Maybe it’s their energy, their chemistry, or the fact that they’re already doing the thing they’re pitching. Whatever it is, listen to your gut (but, like, back it up with research).
Investor Hack: If you leave a meeting and can’t stop thinking about the team, that’s a great sign. If you’re more excited about what you’re having for dinner, that’s a sign too… but not a good one.
TL;DR: Spotting Teams That Deliver
David Frankel’s checklist for superstar teams boils down to this:
- Balance of skills? Check.
- Tough but resilient history? Double check.
- Drama-free zone? Yes, please.
- Passionate AF? Definitely.
- Results-driven? Of course.
- Passes your gut check? Boom, you’ve got a winner.
So, next time you’re weighing an investment, remember, you’re not just betting on an idea or a product. You’re betting on a team. And now that you’ve got the tools to spot the real MVPs, the future’s looking bright (and hopefully very, very profitable). Go forth and conquer, young investor!