What is a team foul, how is it different from a personal foul?

Investors, how do you define a world-class team when evaluating an investment? What's your take on team vs product?

• I see a common investment criteria for firms of various sizes requiring a "world-class" team. But what (factors) really defines a team to be world-class? Is it a resume with Google or FaceBook in bold? Or is it the history of making a million dollar in stock market or developed a mini game at the age of 9? Often, investors talks about the importance of a team because products often change. People can change/improve over time as well. In my opinion, this mentality hinders the motivation to design a genuine, well thought product, which leads to over-reliance on a kickass resume from several years ago. Does team really (or should) outweigh the idea/product and the business model that supports it? The team is not a product, and the product is what the world see/uses. The product and model is what will generate revenue, not the team. Team members will inevitably turnover, often forced by the same investors that helped the company lift off. But if the core idea genuinely kicks butt, it will sustain the ultimate test. Numerous examples including Cuban, Zuckerberg, even goes back to Edison support the theory. So why place such importance on something that you(investors) know or will change in the future? Shouldn't we shift the focus to making a better product that would change the world, instead of focusing on building a great team first?   To note: I don’t disagree with having a great team. It’s crucial, but I do think the priority should be placed on the product.

• Answer:

  A great entrepreneurial team is one that: a) Demonstrates that they have a clear understanding of the business and its risks b) Have constructed a business plan that favors minimizing risk, while recognizing that it can never be eliminated c) Has a vision and plan for growth that takes all the remaining risks into account d) Prior experience, such as having grown sales from 0 through an IPO or successful exit, are given considerable weight Having said that, a great team cannot reliably make a lousy product/service successful. Similarly, a great product/service will lift even a mediocre management team.