Home

Does a startup’s team impact its chances at investment or acquisition?

One of my hats is bringing smaller companies within Flex. I've done five or six different startups, including Workday back in the early 2000’s. What I'm doing now with our digital factory initiative began with a six-person startup, which was a hardware company until I forced them to change direction. There was a demand to solve a big problem, so they came in and sold their capabilities to upper management. But once they were handed down to me, I dug in deeper and said, "That's not going to work here. We'll have to change their focus." And they agreed; over the last three periods, we've turned them into a hybrid. They do have a hardware component but they are now a solid software company that goes from A to Z in terms of connecting to the machines, streaming the analytics data, and analyzing that data. Now they’re becoming experts in the field of machine learning for manufacturing. They had great people on the team — a great CEO and one of the best CTOs I've ever worked with. And because they were willing to reposition, they're becoming a leader in their industry, and getting more and more customers. Now I'm at the back of the line saying, "Hey, you forgot about my module here." 

14 views
2 comments
0 upvotes
Related Tags
Anonymous Author
One of my hats is bringing smaller companies within Flex. I've done five or six different startups, including Workday back in the early 2000’s. What I'm doing now with our digital factory initiative began with a six-person startup, which was a hardware company until I forced them to change direction. There was a demand to solve a big problem, so they came in and sold their capabilities to upper management. But once they were handed down to me, I dug in deeper and said, "That's not going to work here. We'll have to change their focus." And they agreed; over the last three periods, we've turned them into a hybrid. They do have a hardware component but they are now a solid software company that goes from A to Z in terms of connecting to the machines, streaming the analytics data, and analyzing that data. Now they’re becoming experts in the field of machine learning for manufacturing. They had great people on the team — a great CEO and one of the best CTOs I've ever worked with. And because they were willing to reposition, they're becoming a leader in their industry, and getting more and more customers. Now I'm at the back of the line saying, "Hey, you forgot about my module here." 
2 upvotes
Anonymous Author
It does come down to the team when raising money, because execution is nothing without the right people to do it. It’s that combination of getting the right strategy and mindset. There's a certain mentality required to be in a startup. I've hired people who could not handle the pace of a startup environment. If you need consistency, predictability, etc., a startup is not for you. That's something that I’ve found to be really important. 
1 upvotes