There's the 'I' and 'U' but no 'team' in virtual. Startups that launch as entirely virtual may find that they're virtually successful - as in almost, but not quite there.
OK, aside from the cute word plays, there is a real reason why startups cannot be all virtual. It doesn't mean that everyone has to be together all day, 12 hours a day and commute for hours to make it happen. For one, that can be a real productivity drain, and for another, it is certainly not eco-friendly. Startups in college campuses or those consisting entirely of single folks sharing a communal apartment can skip this post in smug satisfaction - but the rest of us have to work at balancing the needs of people and planet with milestones and resources (or lack thereof).
Superior communication is how mankind evolved from grubbing for edible worms to savoring warm chocolate cake with truffle in the center (yum...). So it's not surprising that it helps the startup team to pull together instead of haring off in different directions. But communications don't get established by saying 'we need to communicate' and everyone nodding agreement. You need to seed a 'culture of communication' and help it get established so it can be sustained without much effort.
Technology (the output of many startups) has made it really easy to communicate across distances - Skype alone has probably caused a 1000-fold growth in virtual teams. But just because the tools are there doesn't mean that people know how to use them effectively. Ideally you'd want your team keeping in touch the way they would be if sitting across each other in a bull pen, but with the cranked up productivity of sitting in their PJs on a couch at home. Can it be done? Sure - but only if they've built a rapport and can ping a colleague (or the CEO) mid-way through coding with 'this is the short-cut I'm taking - what do you think?'. The team has to feel comfortable asking and telling, and not worry too much about interrupting or wasting time.
And how do you build this rapport? By meeting often, and in person, especially during the early stages. If you don't have an office (which is most likely, pre-funding) there's your living room, the legendary glamorous garage, and the #1 worldwide alternative to the home-office: the ubiquitous coffee shop. It doesn't matter where and it doesn't have to be all the time - but meet often, preferably on a schedule and spend time hashing things until you've not only got the communicating habit inculcated, but everyone's got the quirks figured out and doesn't get huffy at a co-worker's skepticism (she just likes everything spelled out) and remembers to touch base with the CEO on everything because he wants to be in the loop (startup management - that's another post).
The rest of the time, when you're not meeting face-to-face, set it up so that you're in touch every day with every one by chat, con calls, whatever it is, pick the medium and use it often so everyone gets into the rhythm and isn't wasting time decoding the message (a la teens and texting). And of course, there's always the getting together over lattes, dim sum, pizza and beers - more of the rapport building.
Sometimes it may seem that all the touch-feely stuff is taking away precious time from the serious work of building a product. But you aren't just building a product, you're building a company - and without adequate communication you may end up building something you don't want. Think about it - you have a vision for something new and innovative that you and your team are trying to build. You can't really expect that the vision can be documented in sufficient detail to provide a comprehensive blueprint - and if you're spending enough time to attempt to do so, maybe a startup's not the right thing for you. Communicating the vision requires constant refinement, from the big picture to the tiny pixels. And along with the product vision, there's also the myriad operational details of what to do or not, choices to make or not, that are not obvious and won't become standard operating procedure for a long time (until, let's face it, you're big enough to afford structure and bureaucracy). So keeping everyone on the same page (even as you keep turning it!) is essential and not fluff stuff. That's not to say you can't be efficient about keeping connected, but remember to provide a venue for questions, debate and casual what-iffing too. The creativity of the communications in the early days is a big part of the fun of launching a startup.
Virtual+frequent+communication. Yup, there's a team in there. And fun too (I'll stop now).
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