How do you value a company's team and talent as an intangible asset?

Full Explanation

Investors often say "we invest in the team, not the idea." Team is an intangible asset if it represents differentiated capability—e.g., ex-Google engineers building ML-driven products, or ex-Stripe founders building payments platforms. Valuation approaches: 1) Comparable: teams with strong track records (prior exits, proven execution) command premium valuations. 2) Replacement cost: if your CTO took 10 years to build deep ML expertise, replacing them via hiring could cost £500K+ in recruitment and ramp time. 3) Optionality value: strong teams can pivot, execute faster, and attract capital—this optionality has financial value. Risk factors: key person dependencies (is the company reliant on one person?), retention (have you lost key people recently?), and equity alignment (do cofounders still own meaningful equity?). Retention devices: vesting schedules, option pools, equity grants. Investors scrutinise: do key people have non-competes? Are they likely to stay for 5-10 years? Team fragility (revolving door of departures) reduces intangible asset value. Opagio's questionnaire helps companies document team credentials, expertise, and track record as part of comprehensive valuation.

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