3 Attributes Investors Find Attractive In Startup and Why Investors May Prefer Inhouse Development and Engineering Teams.
The Ability To Be Flexible and Pivot: Inhouse teams allow the ability to change direction pending the market conditions. If there are instances where there can be improvement in the original idea there can be an ability to change direction. Investors tend to look at teams in conjunction with the idea behind the startup.
Some examples of tech companies that were able to pivot include X (Formerly Known As Twitter) which was originally called Odeo whose competitor was iTunes.
Another tech company that pivoted was Shopify (previously called Snowdevil), which started as a snowboarding equipment eCommerce website. -
Source startupsavant.com
A Strong Team: According to Stanford.edu the founder’s ability to manage tames is one of the most important attributes that drive investment decisions, and can be preferred over the technology or idea alone. Investor’s decisions to fund can range on various attributes from the product itself, the management team, or what markets are outside influences.
Quality Control and Velocity: Inhouse teams can have more control of the intellectual property (IP), and the code itself. In addition to quality control, in-house teams can have faster ideation, feedback loops, and continuous improvement.
