I mentioned in my previous posts on management competency and compatibility that VC’s primarily select good management because they will be fun to work with and can get the job done. However, there is another benefit to backing great management teams; they require less hand-holding. It’s worth noting this, as it further explains VC focus on management teams.

To clarify, good VCs are willing to give entrepreneurs and the company the support they need. However, the best management teams typically don’t need as much attention.

The reason why the second tier management teams need more time is because they are unable to manage the most difficult situations that will inevitable arise from a startup. While they generally do the right thing in these situations and reach out to their board for advice, this creates more work for VCs. The best managers are able to handle these situations independently, often reducing board contact from requests for help to updates.

In addition, second tier managers can become the crisis. Big egos can create dramatic demands and poor managers may force the board to find their replacement. Either scenario can create lots of stress and work for the board.

With this in mind, take an honest look at your team and make the extra effort to fill any gaps with the absolute best people available.