We Invest In People is the oldest principle in venture capital. It's also, Soma Pirityi argues, the industry's longest-running paradox. 65% of startups fail due to team-related issues, not because they can't sell or find product market fit. So why can't we better measure, predict and guide startup teams to success?
Soma is the founder of ETA Technologies, the Cambridge-based company that's on a mission to measure, model and inform team dynamics. They've analysed over 10,000 startup teams and built mathematical models to spot the patterns of success - and failure - and realised that the team is the soul of the company.
In this episode, we get into the data behind startup failure, the sometimes counterintuitive dimensions of what makes a great founding team, and why the single most predictive factor in startup survival is something most founders have never heard of.
Why VCs are beaten by a stock-picking algorithm when it comes to early-stage investingWhat the team slide in a pitch deck actually tells investorsWhy too much resilience can kill a company as surely as too littleWhat is the single most predictive factor in founding team survivalThe one story that proves why ignoring a data model can cost you everything0:00:54 — The founding paradox: investing in people you cannot measure0:04:07 — From VC to founder: what crossing the table teaches you0:05:59 — The negotiation nobody teaches founders0:09:17 — Building ETA and why Cambridge beat Silicon Valley0:12:35 — 65%: the startup killer nobody talks about0:16:00 — The lone genius myth and the teams behind the icons0:19:45 — Survivorship bias: why ETA studies failure, not success0:26:29 — The Big 20: what ETA actually measures0:32:37 — Synergistic support: the most predictive factor nobody has heard of0:35:50 — Jim Simons: the mathematician who changed finance0:41:12 — The death of the pitch deck0:44:50 — The Frankenstein moment: testing their own teamETA Technologies: https://eta-technologies.com/Connect with Soma on LinkedIn:
https://www.linkedin.com/in/soma-benedek-pirityi/
Peter Thiel with Blake Masters 'Zero to One'
https://uk.bookshop.org/a/15792/9780753555200 (affiliate links)
Gregory Zuckerman 'The Man Who Solved the Market' (Biography of Jim Simons and Renaissance Technologies)
https://uk.bookshop.org/a/15792/9780241309735
Ashlee Vance 'Elon Musk'
https://uk.bookshop.org/a/15792/9780753555644
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