Ah! I think a better way to describe VCs focus on teams is this: "A great team is a necessary but not sufficient ingredient for us to be willing to invest." The thing the OP is saying that the team is usually the first/most obvious problem with the startup. It takes about 10 minutes to get a sense that a team sucks (bad salespeople, abrasive, confused, misguided, insane-- whatever), while due diligence on a product/market can be a pretty big task.
Most investors judge the whole package (market, timing, traction, product, team).
Whether general feeling of team quality is a measure of anything useful is an interesting question. Most of these guys have pretty endless deal flow. Like a company that has way too many applicants for way too few job openings, they look for early ways to thin the herd.
Most investors judge the whole package (market, timing, traction, product, team).
Whether general feeling of team quality is a measure of anything useful is an interesting question. Most of these guys have pretty endless deal flow. Like a company that has way too many applicants for way too few job openings, they look for early ways to thin the herd.