Idea Vs. Team
Have you ever stumbled upon an idea that you think is going to be the next billion-dollar business? It’s like the world just lit up and you get all excited. You start doing some market research, you talk to people about it and they get excited about the idea too. That is, until you hit a major flaw in the idea, and that almost always happens. Now the idea does not seem so feasible anymore. You lose heart, and if things don’t pick up, you toss it aside.
So what’s in an idea? Without execution, it’s nothing.
That’s why Paul Graham doesn’t go for ideas. He goes for teams. And that’s how it should be. It’s not where you’re going that matters, it’s who you’re traveling with that’s important. Ideas change as you learn more about your product and the market it aims to serve. The team determines if you can move fast enough to adapt it. The slow ones die. It’s that harsh.
So why is it half of the investors that I have met seems to be gunning only for ideas that can generate a huge amount of profit, even when any indication of that possibility is only on paper? And while they are drooling over that seven-digit number scrawled next to the heading “Forecasted Annual Revenue”, they ignore some solid teams out there who have ideas that form the basis of some really innovative, disruptive tech. It’s always “Tell me about your idea and what is the revenue model” first before “Who are you?”, which sometimes doesn’t even get brought up. I’m not trying to brag about Pandamian although I do think the tech team is awesome :) But I do see a trend here.
I can understand that investors are business driven people. And an idea which promises on paper to be able to bring in the big bucks is appealing. But, in my opinion, the team itself should weigh in more when considering the feasibility of success. I’m not trying to put the blame all on them. Investors have a tough job identifying good investments. Sometimes it is just too hard to evaluate a team they hardly know and they fall back on evaluating the idea because they can trust their business judgement. But even a great idea can fail in execution.
Spend more time getting to know the team. Pick the ones that will last and no matter what the idea, they’ll work towards achieving success.