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b) That’s-not-all-folks

• at least two individuals

• active part in the creation and development of a business

• key role in strategic decisions

• equity ownership (usually more than 10%)

1. How to find team members?

2. How to set up the team?

3. How to manage the team?

• always depends on the preferences

• typically founding together with people we konw -> getting along

• but uncertainty can be there wheter you get along with people you don’t know or get ahead with people you get along with

• often connected to more psychological safety

• enjoy that you avoid one type of uncertainty (relational uncertainty)

• build on joint values, connect them to your firm values, and your firm’s culture

• learn to have fights (relationship or task conflict)

• reflect about old and new roles

• speak early about potential changes in team composition

• make sure to include others, such as future team members, employees

team charter and co-founder agreement

• enjoy flexibility in search for potentail partners

• maximize your team’s human capital

• make sure to understand others’ values and vision

• define your relationship and potential transformations

• discuss rules and roles to establish fairness and trust

• think about introducing certain rituals and routines

• distribution of equity is the entrepreneurs’ “first deal”

• typically, teams split quickly and agree on equal split without longer discussions

• negotiations about equity are often emotional end even stressful

• besides money -> power and control crucial issues

• backwards orientation

• forwards orientation

• idea premium

• capital contribution

• opportunity costs

=> more certainty about contributions

=> but not necessarily agreement

• prior experiences

• level of comittment

• titles

=> “when the pie is split, 95% of the work required for success remains in the future.”

• split earlier

• split later

• attract team members with an equity incentive

• previous work experience with co-founders in another start-up

• time for calm negotiation before pressure to split

• team member’s contributions and commitment not clear in the beginning

• future incentives are available

• business model and roles will form over time

• no regenerations are necessary after fundamental changes

• uncertainty and changes in team members contributions

• vesting can help to keep equity split fair over time because founders need to earn equity stakes

• advantages if team members leave early (unvested portion can be reallocated)

• not perfect, but protection for all team members

• based on time

• based on milestones

• vision congruence

• vision incongruence

• task conflict

• relationship conflict

content:

• disagreements about content of team tasks

• including differences in viewpoints, ideas and opinions

consequences:

-> conflicts increase exchange of ideas, decision quality and venture performance

content:

• interpersonal incompatibilities

  • tension

  • animosity

  • annoyance among team members

consequences:

-> conflicts reduce trust, cooperation and venture performance

• naive realism (“facts are on my side”)

• false consensus (“anyone would agree that….”)

• actor-observer bias (“he is always so difficult”)