Another core evaluative factor to consider is the team behind a given investment as these individuals – particularly in venture equity and other asset classes with nascent businesses – affect a business’s ability to execute. When looking at a team, first look at those leading a transaction (most common in real estate) or those leading a company (most common in venture equity) and try to identify prior transactions or start-ups that these individuals have led – the more successful experiences, the better. From there, look to gauge leadership’s technical and market knowledge, whether it comes from prior work experience, training, or outside interest in a particular space. As a rule of thumb, at least one or two leadership members of any tech-related venture should have technical experience and, for larger opportunities, should be supported by a team of other technical employees to avoid overload.
