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!
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.
We raised our first round while I was located in US, my cofounder in London and our marketing team in Singapore :)
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.
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.
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.
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.
Thanks everyone for the various, and helpful insights!