ENT_L1 Flashcards
1
Q
What is an entrepreneurial team?
A
- Definition: A group of two or more individuals
- Shared interest: Financial and otherwise in the venture’s success
- Interdependent efforts pursuing a common goal
- Executive-level responsibility in early phases
2
Q
Which are the main challenges in forming an entrepreneurial team?
A
- Team structure: Number of co-founders, roles, equity shares
- Control vs. conflict: Balancing authority, contributions, and motivation
- Growth: Designing organisation as headcount increases
3
Q
What is the ‘optimal’ team size for tech ventures?
A
- Often 3 co-founders is effective
- At least 50% joint experience
- Industry experience variation of 3+ years
4
Q
What is the fundamental tension for entrepreneurs?
A
- Seeking co-founders improves resources and flexibility
- But can reduce personal control and create conflict
- External capital vs. control dilemma
5
Q
What does ‘Rich vs. King’ imply?
A
- Rich: Focus on maximising return, hiring senior talent, giving up equity
- King: Retaining control, hiring less experienced talent, preserving ownership
6
Q
Why consider team heterogeneity?
A
- Diverse teams: More creative, higher innovation, potential conflict
- Homogeneous teams: Faster decisions, more stable, can lack creativity
- Functional diversity often improves performance
7
Q
What are core responsibilities of a startup CEO?
A
- Product vision: Continuous refinement based on customer feedback
- Team building: Right people in the right roles
- Cash flow: Managing revenue, expenses, and potential funding
- Brand management and networking
8
Q
What is a dynamic equity split?
A
- Flexible allocation of founder shares over time
- Tracks real contributions (time, cash, IP, etc.)
- Adjusts shares after major role changes or investments
9
Q
How does Tuckman’s model describe team development?
A
- Forming: Polite introductions, exploring purpose
- Storming: Conflict, power struggles, open disagreement
- Norming: Establishing shared norms, cohesive collaboration
- Performing: Productive, efficient teamwork
10
Q
Why is clarity of roles so important in a new venture?
A
- Reduces conflict and confusion
- Defines decision-making authority
- Aligns incentives for each member
- Facilitates growth and accountability
