Are you struggling to secure funding for your startup? Your startup team composition may be the culprit behind your multiple rejected proposals and missed funding opportunities. 18% of startups fail due to team problems and other human-resource-related issues, according to multiple sources. Yes, funders want to see an innovative idea, but the team is arguably even more important when they're deciding whether to fund your startup’s idea.

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Funders scrutinise the team just as much as the idea itself. Why? Because even the best idea can fail miserably without the right people to develop it and bring it to market successfully. The truth is that having the wrong startup team composition is one of the fastest ways to get your funding proposals immediately rejected.

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Here are 5 team attributes that will make funders think twice before signing that check.

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1. Lack of Relevant Experience

At the top of the list of deal breakers is a team without any direct experience in the industry or market they're trying to disrupt. Investors want to see a founding team with skills, knowledge, and credibility pertaining to the specific problem they are trying to solve.

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For example, a team pitching a biotech venture would be very difficult to take seriously if no one has any background in biology, medicine, chemistry, or related fields. Funders need assurance that the team can realistically understand industry dynamics, capitalize on opportunities, and navigate potential minefields.

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Similarly, building a tech startup without any computer science or software engineering experience on the founding team is a surefire way to get rejected. Investors will assume there are gaping holes in the team's ability to actually build the product.

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3. Missing Key Roles

If your startup has team members with relevant expertise, funders will look further whether your team has all the main roles covered with qualified, designated people or there is a competence gap. Successful startups need a blend of business, technical, marketing, operations, and other key capabilities represented. 

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A team lacking a technical lead for developing a product that's a core part of the business is not ready for prime time. Take for instance, a fintech startup with all relevant expertise except a marketing expert. Awful, right? The success of most startups rests on marketing, and how to sell the idea to potential customers. Well-rounded startups need a balance of skills.

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A team composed of individuals with similar backgrounds, skills, and experiences can be a recipe for disaster. If there are crucial gaps in expertise and roles, funders may see it as too high of a risk that the team won't be able to properly execute the idea. They'll likely pass on the opportunity.

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4. Overreliance on a Single Founder

It is a common thing for startups to cut down on costs by having few hands handling multiple tasks. Funders prefer to see relatively balanced teams rather than startups that are overly dependent on a single founder or individual contributor. While having a passionate driving force is great, teams that are essentially one-person shows represent a major risk.

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Imagine a startup with five team members but the bulk of the startup operation rests on the founder who is also the engineer, assisting sales officer, and main distributor. It is like the entire startup is on the head of that one person. Funder’s fear in this case would be: What if that individual burns out, has to exit for personal reasons, or simply can't handle the enormous workload alone? 

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That alone is a single pointer that the startup is sitting on a time bomb that could doom the entire venture. Funders like to see strengths distributed across multiple key players who can pick up the slack and continue operations if someone departs.

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5. Lack of Full Commitment

Fantastic if your startup is guilty of none of the above. Here is another thing to look out for. Do your team members have a lot of other commitments and potential distractions? If yes, such raises doubts about their dedication. Funders want to see a founding team that can devote their full energy, focus, and time to making the startup a priority and success.

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For example, if the key members of your team are still running other businesses, being students, or having significant other jobs, funders may worry that your startup is more of a side project that won't get the commitment it needs. Divided attention and priorities are a big red flag.

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6. Interpersonal Conflicts or Lack of Alignment

Interpersonal relationships and team chemistry matter a great deal as well. Any hints of conflicts, power struggles, or lack of cohesion within the founding team is a major concern for funders when evaluating startup teams.

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Imagine a splintered team that is also dysfunctional or at odds with each other. Such a team casts doubt on their ability to work together long-term through the inevitable trials of a startup. If you were a funder too, would you fund a project with a divided team? 

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The broom analogy comes into play here. Funders assume a conflicting team is a scattered broom that cannot sweep a floor clean. Funders need to see a unified team working towards the same vision with mutual respect, effective communication, and the ability to make decisions together.

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Conclusion 

Winning a grant is not solely on the quality of your idea or how compelling your proposal is. Other factors like the team behind the idea, matter to funders. Having the wrong team composition could derail the success of your application. Almost all grant applications ask thorough questions about the team. Building the right founding team from the start with the proper roles, expertise, commitment, and chemistry is critical. 

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