Artemis Ventures, LLC 19981 How to Build Effective Management Teams Christine Comaford General...

Artemis Ventures, LLC 1998 1

How to Build Effective Management Teams

Christine ComafordGeneral Partner and Managing Director


Bio

Engineer, entrepreneur, venture catalyst 5x entrepreneur, 2 IPOs, 3 M&A, $100

million raised in last 5 years Venture Catalyst specializing in Enterprise

& Internet software Partner: Kimball Atwood


Did You Know?

6 in 1,000,000 high tech ideas will result in a

company that goes public


Did You Know?

Founder CEOs own an average of less than 4% of their companies after

the IPO


Did You Know?

On average, 6 in every 1,000 business plans will

be funded


Did You Know?

10% of startups in a given VC portfolio will succeed


Did You Know?

The #1 reason a startup’s valuation is cut is an

incomplete executive team


The Net-Net

Creating a successful startup is hard 90% of startups fail Most entrepreneurs don’t get insanely rich VCs are increasingly harsh

What makes the difference between success and failure?


Unfair Advantage


What it Means

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


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


Who You Need

Visionaries (assorted positions) Leaders(CEO, Managers) Implementers (Sales, Marketing,

Technology) Infrastructure Builders/Supporters

(Operations)


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...


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


Create and Post Values

Add Massive Value Make and Keep Commitments Take Ownership Respect One Another Be Positive

- Artemis Ventures Values, version 1.0


How To Find Team/Screen Fast

Best way = via schmoozing Online job boards LIFO helps gauge stress behavior,

personality traits Interview wisely: “The Manager’s Book of

Questions” John Kador


How To Find/Screen (cont’d)

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


Your Extended Team

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


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 they’ll manage you!!!


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 can’t fire you -- BOD can!


Do You Have These?

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


The Net-Net

Minimize Risk Maximize Return

What Are You Doing To Ensure These?


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


Questions?

Ask or Email [email protected]

Christine ComafordGeneral Partner and Managing Director

Artemis Ventures, LLC 19981 How to Build Effective Management Teams Christine Comaford General...

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