Selecting startups for investment is a difficult task and there are a lot of criteria to look at : does the startup solve a problem for which clients are willing to pay? what market would be interested, what competitors are out there? What is the startup team like and how are they functioning together?
For this last point how is the team functioning implicating how do they make decisions, do they have the ability to adapt when confronted with adversity, set the right priorities and be able to execute, it is hard to evaluate this on paper or during an interview or pitch. The best way is probably to see the team in action, but how can you do this without investing too much time ?
To see them in action you have to put the team in a real business situation. Our Business game DiG – Discovery– Innovation – Growth does this. It puts teams for 2-3 hours in a realistic and unfamiliar business environment during which they have to make decisions together, analyse the results of their actions, adapt and execute to optimise their results. The teams needs to discover customer insights, test and develop their new product/service functionalities, make decisions on their pricing and how to market and communicate on their product during a period of 5 years.
Incubators can use the game to observe teams and their dynamics, how they are able to learn from their mistakes and evaluate who are potential high performers. The simulation will give a realistic view of the team and their potential to make their business grow. F10 an incubator and accelerator in Switzerland has used the DiG Leadership game last June to select startups of their short list candidates and to see them in action. Two selections of half a day were organised, teams ran the game for 2 hours, reflected on their experience and presented their learnings to the selection committee. Even though not all teams could be selected by the incubator, all of them got a great learning experience out of it that they will certainly use to grow their business.
Thomas Landis / startup coach working for F10 : “Using the DiG business simulation supported us to select the startups with the best fit for our FinTech incubator and accelerator program at F10. The game allowed us valuable insights into the way how each startup worked: team dynamics, focus on what matters, strategy planning and execution. Within no time, it verified our impressions of several teams and spotlighted obvious weaknesses of supposedly strong teams as well. We enjoyed this playful approach of closely screening our preselected candidates.”
The DiG session for F10 was organised and facilitated by our DiG Associate Ruediger Petrikowski from Switzerland. If you want to know more about the DiG Business game and how you could use it, please contact us at email@example.com
DiG associate : Ruediger Petrikowski