Teams with greater levels of efficacy will be especially persistent in pursuing their goals. For a new venture management team, team efficacy may be particularly important, as persistence in the face of adversity is essential to meet the inevitable challenges and setbacks that occur during new venture creation. Whereas normally team efficacy is based on prior success together (Bandura, 1997), a new venture team has little history to serve as the sole or dominant basis of efficacy. Drawing from expectancy theory (Olson, Roese, & Zanna, 1996), we posit that in addition to current success of the team, previous new venture experience of team members enhances expectations of future success, thereby increasing team efficacy. Additionally, we hypothesize that the functional capabilities of the team are a stable force that can be drawn upon to meet future challenges, and therefore enhance team efficacy.