Here's the scenario: there's a startup with two founders (and a couple of other participants) in it working part-time while keeping their full-time, primary jobs. They are building a healthcare-related SaaS application. They have been developing the vision and have actually recently got to the point where:
a) they have a handful of signed
beta participants, contracted to
turning into paying clients in 3-6
months after v1.0 is launched in a
couple of months,
b) have successfully graduated from
an entrepreneurial program very
similar to Y Combinator with lots of
investors now sniffing about, and
c) have a great, positive pipeline
ready to close.
They are going to have to raise funding soon to staff and ramp up. One founder is ready to go full-time as soon as money is raised, another is not so ready for various reasons. Primarily, the latter strongly believes the dollars should go towards getting more staff first, then hiring execs shortly thereafter. The latter's dedication is not the issues; he's been putting in mean hours for months.
The latter is the guy basically building the whole platform: the guy who'll be CIO. The former is the sales/marketing side, the guy who'll be CEO.
Do investors need to see these two founders as full-time in the business to feel better about investing in it? Does the guy who knows the most right now about the systems and service need to be locked in an employment contract, or is the equity arrangement enough? What do investors expect when it is said "they want to see a good idea and a solid team in a startup"?
C-Titles seems to be a bit heavy for any startup under 10 employees, I understand the need for legal purposes, But for Investor's ..??.. .
Check an earlier post on
I tend to believe that investors want to know that both founders are committed to the effort. I'm unclear if Tech founder is - "not so ready for various reasons" doesn't sound that strong.
Anyone can have an idea - it takes someone to deliver that idea, have it go through several iterations, and ultimately validate what the customer wants. That doesn't sound like it can be done with the one founder - so I wouldn't consider that a fundable "solid team".
NB > both don't need to be full time right now, they need to be willing to commit 150% of their time post funding - or you have to have a real compelling case to why you believe that taking their money and working part-time on a project will yield them great results.
Most startups dont require investors, let alone a CIO. If you are a huge startup based on lots of investor money then the CEO usually is the CIO until you are large enough. I think its a position to have just before getting a CRE, (down the latter)
If it matters, investors only need to "see" your team when pitching, it doesn't matter that they are not in an office working full time. So if you feel like you need a "solid team" try and arrange these meetings at a time when the full team is available.
What do investors expect when it is said "they want to see a good idea and a solid team in a startup"?
It means they want to be sure you have an idea that can make money and a team that can support your idea making money.
I suggest you also check out this post which may help with answering some of your questions:
Should I add people before looking for funding