At a glance
Investor: A venture capital fund evaluating and supporting an early-stage company
Starting point: The idea, timing, model and financing looked promising, but founder and team execution remained uncertain
Outcome: Earlier identification of role risks, stronger oversight and delivery of the investment agreement within planned parameters
Context
The fund had analysed the market opportunity and business model, but had much less reliable information about the people expected to deliver them. Delays, missing documents and a need for weekly oversight raised concerns about execution.
The business challenge
The fund wanted to increase the likelihood that the start-up would reach its next financing round efficiently. It needed evidence about the founders’ managerial and entrepreneurial potential rather than relying only on track record and investor intuition.
What the diagnosis showed
- The fund lacked detailed information about managerial and entrepreneurial competencies, motivation, energy and adaptability.
- The founder’s working style created delays and required more supervision than expected.
- Assessment of the founder and CTO showed different development needs and role risks.
- The CTO’s motivation was poorly matched to the role, with personal goals taking priority over the start-up’s goals.
What we did
- We assessed the founder and CTO using psychological methods focused on competence, motivation and role fit.
- The founder received development support in innovation, calculated risk-taking and proactive action.
- Consultations were organised around real tasks and decisions rather than abstract training.
- An external specialist verified the valuation and quality of programming work, and the fund introduced ongoing monitoring of technology delivery.
Results
- The team changed its way of working at several critical moments in the investment process.
- The fund reduced the risk of major, avoidable decisions based on incomplete information.
- Technology work became more transparent to the investor.
- The investment agreement was implemented within the planned parameters.
What this case shows
A promising market and business model do not remove people risk. Early assessment makes execution risks discussable and allows investors to choose proportionate support, governance and monitoring before problems become expensive.
