The Psychological Playbook for VCs and Startups

In a data-driven world filled with engagement metrics and gross margins, it is still difficult to find the right template to discuss this key matter - the team.

Despite the analytical nature of VCs, the process of evaluating a team has remained emotional and often led by bias. When it comes to evaluating founding teams as part of the due diligence process, the VC industry still uses an intuition-driven approach.

The reasons for this blindspot in team analyses are varied; but they revolve around one principle: the psychological realm is less quantitative in nature and it is hard to adopt a mental scorecard that would fit the entrepreneurial spirit. There are multiple psychological factors to take into consideration and prioritizing among them is not easy.