Key Person Risk
The danger that a business depends too heavily on one individual.
If a single founder or employee holds critical knowledge, relationships or skills, their departure could jeopardise the company. Investors look for documented processes, a balanced team and succession thinking to reduce this risk.
Examples
A startup cross-trains staff to reduce reliance on its CTO. — Investors flag key person risk during due diligence.
How it relates to The Startup Foundry
The Team Report surfaces team gaps and risks so you can address them before investors raise concerns.