Team Assessment – the Investor’s “Secret Ingredient” for Startup Success

MILJA INKERI MÄKELÄ 10/11/2025

When investors are asked what drives their investment decisions, “I invest in the team” almost invariably comes up on the list. Often, the follow-up question asks what this means in practice — and the answer is sometimes unclear. Previous experience, networks, or track record are frequently mentioned, but they don’t tell the whole story. The real question is: what makes a team successful?

Why is the team so critical?

The success of a startup doesn’t just depend on an idea or market potential — a reliable and well-functioning team can make the difference between success and failure. Team risk is one of the most important factors considered during due diligence. If leadership, dynamics, or resilience are compromised, growth projects may fail, even if the fundamentals are otherwise strong. The root cause of many failed ventures can often be traced to dysfunctional interpersonal chemistry.

What should investors know about teams?

First, it is beneficial to understand the sources of motivation and personal preferences of the team members. What drives a startup entrepreneur forward, and what is meaningful to them?

Another key aspect is the team’s ability to withstand pressure, demonstrate resilience, and deal with uncertainty and crises. The startup world is full of ambiguity, and if the team is unable to tolerate it, excellence becomes impossible.

The third factor is working methods, roles, and leadership. Often, the founder takes on the role of CEO, even if it is not necessarily the best fit based on their innate skills or leadership qualities. In such cases, the company may end up being led by the wrong person. Efficiency improves, and potential conflicts can be avoided if these factors are recognized early on.

A fourth dimension is detail orientation versus big-picture thinking. A strong team should include both those who provide direction and those who navigate day-to-day operations. Without operational people, even the best visions remain unrealized, and strategies unimplemented.

It is also crucial to assess the team’s personal chemistry — whether one plus one equals more or less than two. What kind of social practices and dynamics exist within the team? Do members complement each other, or do they risk colliding? Internal conflicts can significantly hinder problem-solving during challenging times.

Every team carries its own risks. Recognizing them from the start gives investors the opportunity to provide support when it matters most.

Ikigai Assessments & Test Batteries for Investors

FiBAN’s partner, Ikigai Assessments, has developed a test battery that investors can use as part of the due diligence process — or that startups can use to gain insight into their team’s motivation, strengths, and compatibility.

With this assessment, investors can gain a deeper understanding of a team’s dynamics and potential areas for development — information that can influence the focus of investment decisions.

However, it is essential to remember that team assessment always involves a degree of subjectivity, and there are no perfect teams. Good assessment is not about perfection, but about identifying risks, strengths, and development paths. Many risks can be mitigated when identified early and addressed through the right kind of support.

Writers

Lilli Sundvik

Angel investor and FiBAN member

Business Psychologist, Doctor of Psychology

Tiina Laisi-Puheloinen

CEO of FiBAN

Master of Education, interested in human behavior and leadership, and developed competency assessment systems for the Finnish Defence Forces in the early 2000s