1. Invention to Venture Section 4 Building the Team: Finding the Right Components & Getting the Best Results © 2005 NCIIA and Grayhead Associates All Rights Reserved

2. Invention to Venture Importance of teams Subject Matter Expertise –Technical –Marketing/Sales –Other Management Expertise –Business Planning –Operations Management –Finance & Administration Enterprise success depends on having the right mix People skills Individual attributes & personalities Experience, knowledge, contacts Ethics and values HardSoft

3. Invention to Venture Management team Board of directors/advisors Mentor(s) Service providers Investors Five major components of the team

4. Invention to Venture Management Team YOU Board Mentors Service Providers Investors Five major components of the team

5. Invention to Venture YOU Five major components of the team Objective Self-Awareness & Understanding Experience & expertise Key characteristics & tendencies Strengths & weaknesses Leveraging strengths Recognizing & managing gaps Vision, ideals, & ethics

6. Invention to Venture Management team Diversity is strength & good business: technical, sales/marketing, and management/business capabilities & experience Pick your team with great care Character, values, and commitment count

7. Invention to Venture Getting the best people Finding and signing the best is one of your earliest and most important actions Be willing to share the rewards and power to get the right people Beware of people unwilling to share early risks

8. Invention to Venture Developing the management team Add skills to the mix as needed Outsourcing and/or part timers can work well at the beginning Your investors, boards, advisors, mentor can help you find good candidates

9. Invention to Venture Common interests are recognized and the benefits of being interdependent Vision, Shared Purpose & Operating Principles are developed together Goals, plans, key initiatives, and ownership are declared Enrollment occurs. Getting to total team performance Convergence  Direction  Performance

10. Invention to Venture Enrollment ~ Compliance Enrollment Compliance Intrinsic Choice Partners Creative Extrinsic No choice Boss/employee Reactive Genuine Formal Grudging None

11. Invention to Venture Board of directors and board of advisors Directors have certain legal requirements, especially for public companies Advisors provide expertise in a specific area and have no legally proscribed role Directors/Advisors are generally compensated

12. Invention to Venture Choose your boards carefully Investors (VCs, angels) often demand a seat on BoD Each member should bring specific expertise, experience, contacts, wisdom, willingness to devote time Use your boards formally at meetings and informally between meetings

13. Invention to Venture Mentors Finding the right mentors for your venture requires perseverance and luck Mentors might be angel investors, successful entrepreneurs, faculty members Usually do it to “give something back” Mentors must walk a fine line between advising and running the show

14. Invention to Venture Service providers Invaluable help, sometimes at a reduced rate for start-ups A sense of confidence for potential investors Can include: –Attorneys (corporate, employment law, or IP) –Accountants –Consultants –Investment bankers

15. Invention to Venture Corporate/Employment Law attorneys Early assistance in deciding establishing legal form Later help with various needs –Contracts of all kinds –Alliances with other companies –Employment law

16. Invention to Venture IP Attorneys Early help in deciding what form of protection, if any, is appropriate Ongoing assistance obtaining and maintaining protection or negotiating licenses

17. Invention to Venture Accountants can… Help with initial business plan financials Act as or recommend part-time CFO Introduce you to investors Produce audited statements needed to go public

18. Invention to Venture Consultants can provide Market research Business plan preparation Technical assistance Business development/marketing/sales help Recruiting Value and leverage for founders

19. Invention to Venture Management Team YOU Board Mentors Service Providers Investors Five major components of the team

20. Invention to Venture Importance of teams Subject Matter Expertise –Technical –Marketing/Sales –Other Management Expertise –Business Planning –Operations Management –Finance & Administration Enterprise success depends on having the right mix People skills Personal attributes & personalities Experience, knowledge, contacts Ethics and values HardSoft