Hiring Your Founding Team - What does the data say?
Thank you to JOHAN TORSSELL for his research of 25,430 companies
Getting reliable data in start up is very hard and launching and being successful is even harder. But at the heart of this journey is the construction of your founding team—a group of pioneers or pirates if you will, whose collective expertise and vision will get you off to a great start or put you on the path to doom far sooner than expected. Who do you choose?
Drawing on an expansive analysis of 25,430 European startups, that Johan Torssell has done we unveil data-driven strategies that illuminate the path to constructing a great founding team.
What is the optimal number of founding members?
The magic number for founding teams seems to hover between three to five people. This insight challenges the old "the more, the merrier," quote. This suggests instead that a compact team ensures a fusion of diverse skills without sacrificing agility or complicating the decision-making process.
The study articulates a clear message: the strength of a team lies not in its numbers but in its ability to operate efficiently and harmoniously.
Startups run by a CEO who is also a founder often enjoy a distinct advantage. This set up ensures the company's trajectory remains steadfastly aligned with the founder's original vision, embodying a commitment not only to the startup's success but to the realization of its foundational ideals. This insight underscores the significance of leadership that is deeply rooted in the creation and ongoing evolution of the company.
You Need As Many Skills As Possible……….
Diversity in expertise is paramount. The analysis suggests successful startups typically allocate 25-75% of their team to business roles, advocating for a balanced ensemble of technical and business peeps. Such a blend not only helps with innovation but also ensures the effective market introduction of the product, creating a startup capable of both building and iterating quickly on its creations.
The discourse around team diversity often highlights gender as a key factor. However, this study presents a more complex narrative, suggesting that while diversity is crucial, its impact on startup success is not solely tied to gender. Instead, the emphasis shifts to a broader spectrum of diversity encompassing thought, experience, and expertise—thereby enriching the team's collective intelligence and creativity. This is not to say not to do it but also widen to the scope to diversity of thought whilst continuing to create a balance and for equal opportunity.
The correlation between the team's average age and its success appears tenuous at best. However, the study subtly champions age diversity, proposing that a blend of youthful vigour and seasoned sagacity can be the catalyst for both groundbreaking ideas and the strategic acumen required to bring these ideas to fruition.
There is no definitive predictable outcome but…
Arming yourself when this information when you start out can set you on the right path. The essence of an effective team lies in its balance, be it in size, roles, or perspectives.
The full paper is here: -
