search newsletter login upgrade

Money 2.0 Stuff: Team over product will end in tears

by Matteo Leibowitz

April 8, 2019, 6:39PM EDT  ·  7 min read

Quick Take

  • The difficulty of pivoting as a  ‘decentralized network’ requires venture investors to shift emphasis away from team to core product
  • Coda’s $15 million raises questions as to whether superior technology can overcome entrenched network effects 

by Matteo Leibowitz

April 8, 2019, 6:39PM EDT  ·  7 min read

CeloHQ

Contrary to what their Medium posts, podcasts and panel appearances would have you believe, venture capitalists all use the same set framework for evaluating investment opportunities: team, product, market size.

Differentiation in fund performance then comes in two flavours: deal flow and proprietary emphasis with respect to the weight assigned to the ‘team’ and ‘product’ categories (there is no differentiation on the ‘market size’ side – all funds target large markets).