How to Build Effective Management Teams

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How to Build Effective Management Teams
Christine Comaford General Partner and Managing
Director
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Bio

• Engineer, entrepreneur, venture catalyst
• 5x entrepreneur, 2 IPOs, 3 MA, 100 million
  raised in last 5 years
• Venture Catalyst specializing in Enterprise
  Internet software
• Partner Kimball Atwood

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Did You Know?

• 6 in 1,000,000 high tech ideas will result in a
  company that goes public

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Did You Know?

• Founder CEOs own an average of less than 4 of
  their companies after the IPO

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Did You Know?

• On average, 6 in every 1,000 business plans will
  be funded

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Did You Know?

• 10 of startups in a given VC portfolio will
  succeed

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Did You Know?

• The 1 reason a startups valuation is cut is an
  incomplete executive team

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The Net-Net

• Creating a successful startup is hard
• 90 of startups fail
• Most entrepreneurs dont get insanely rich
• VCs are increasingly harsh
• What makes the difference between success and
  failure?

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• Unfair Advantage

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What it Means

• Right market
• Right product/service
• Right timing
• Right info
• Right priority
• Right connections
• Right team

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Agenda

• Who You Need on Your Team
• Building, Supporting, Retaining a Great Team
• How to Find Execs and Staff
• Your Extended Team Members Who/How
• Q A

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Who You Need

• Visionaries (assorted positions)
• Leaders(CEO, Managers)
• Implementers (Sales, Marketing, Technology)
• Infrastructure Builders/Supporters (Operations)

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Surprise!

• You need all above types NOW
• Some slots can be filled with contractors for a
  while (implementers, infrastructure builders)
• A rent-a-controller is better than NO
  controller...

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Building, Supporting, Retaining

• Hire top first, let them build their team
• Communicate weekly
• Remember they are human
• Everyone should know their next promotion or 2
• Create, post, endorse values

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Create and Post Values

• Add Massive Value
• Make and Keep Commitments
• Take Ownership
• Respect One Another
• Be Positive
• - Artemis Ventures Values, version 1.0

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How To Find Team/Screen Fast

• Best way via schmoozing
• Online job boards
• LIFO helps gauge stress behavior, personality
  traits
• Interview wisely The Managers Book of
  Questions John Kador

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How To Find/Screen (contd)

• Outsource employee management (Trinet VCO, etc)
• Know enough about employment law
• Remember you are in California
• Use extended team to help screen, do stealth
  reference checks

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Your Extended Team

• Board of Directors
• Investors
• Board of Advisors -- must have!

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Who To Secure For Extended Team

• Investors - this is a whole separate topic!!
• Board of Directors - heavyweights in industry,
  customer, financial area credibility boosters
• Board of Advisors - same as Directors but should
  be project/area-oriented
• Manage your extended team or theyll manage
  you!!!

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How To Secure Extended Team

• Investors - per your capital acquisition
  strategy
• Board Members - lure with amazing plan,
  compensation based on stage/involvement, pick
  people who will vote with you
• Advisory Board Members - same as Board but pick
  people you can confide in -- they cant fire you
  -- BOD can!

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Do You Have These?

• Right market
• Right product/service
• Right timing
• Right info
• Right priority
• Right connections
• Right team

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The Net-Net

• Minimize Risk
• Maximize Return
• What Are You Doing To Ensure These?

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Entrepreneurial Resources

• Read Burn Rate - Michael Wolff
• Read High Tech Startup - John Nesheim
• Good recruiter Mike Huskins 415
• Check out www.fastcompany.com/career/index.html,
  www.vfinance.com, www.startupweb.com
• Check www.artemisventures.com resources section
  -- updates often

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Questions? Ask or Email cc_at_artemisventures.com
Christine Comaford General Partner and Managing
Director