Angel investor · Investors

Would investors consider investing in a team that's not co-located?

Daniel Hazman Looking for a technical co-founder for a gamification platform startup

May 16th, 2017

We are currently bootstrapping our gamifiied platform-paired app which helps to build community engagement and help with behavior change. Based on the learnings we gleaned from 3 paying organizational clients, we will launch our next iteration product in June.


We're in the process of seed fundraising and wonder how investors would look at a team that's co-located? Most of the team members, including the founder, full stack engineer (no CTO yet), and community engagement manager are based in the same city, but the product design lead is based in a different continent.


Thanks in advance for sharing your thoughts!

Paul Benedetto Many time entrepreneur, advisor and financial guy

May 17th, 2017

Hi, speaking from experience with companies who have had both founders, and vc's in multiple points across the globe - as long as individuals are responsive day to day, and free to travel when needed (e.g. no visa restrictions), then there should be no reason for push back. Just be able to speak to how your team effectively communicates in real-time. There are too many tools out there these days that now make distance a non-issue.

Usman Zubair Ex-MSFT/ DevFactori Apps / CTO (2 startups which raised funding) / Full Stack Engineer

May 17th, 2017

We raised our first round while I was located in US, my cofounder in London and our marketing team in Singapore :)

Mark Wilson CEO

May 17th, 2017

In some instances it is a problem. In other instances it is not. You have some track record working together (I assume). If I were an investor I would expect to hear how you work together seemlessly. I wouldn't need to see too much to be convinced one way or another.

Arild Oldervoll Investor acquiring specialist

May 16th, 2017

This shouldn't be a problem in itself, and might even be an advantage depending on how you depict it and that it actually works well for you. An investor would be more interested in who is on the team and that you actually are able to work together to achieve some awesome results.


It would also be a good idea if you are able to show a strategy on how you as a physically spread group can work together toward common goals and a plan on how to implement the strategy.

Iqbal Founder NGBS

May 17th, 2017

I think it is not a big problem, the most important thing is a clear business plan, project plan, how revenue will be generated and when and how investor will get on his investment? If every thing is clear; there is no issue where your team is, mostly businesses have their development teams in other countries.

averasko

Last updated on May 17th, 2017

This IS a problem. A huge advantage of any startup is instant communication between the members of the team. Remote people lack this by definition.

However, this set up might work for remote teams that are managed by a CTO that is onsite. But needs to be addressed very carefully.


Alex Black Marketing

May 17th, 2017

Good answers

Daniel Hazman Looking for a technical co-founder for a gamification platform startup

May 17th, 2017

Thanks everyone for the various, and helpful insights!