I found this framework to invest in startups interesting, so adding it to my blog. Sheel mentioned it in a podcast that I listened to.

  • Team
    • Most important, especially the founder.
    • Is the future they are articulating clear?
    • Can they bring in a strong culture that brings customers?)
  • Traction
    • What have they built so far?
    • Have they figured out cac?
    • Got any partnerships?
    • Crossed regulatory hurdles?
  • Tech
    • Can this team build a great product?
    • Are they iterating on the product fast?
  • Trends and TAM
    • Are the trends in their favor?
    • If they execute perfectly how big can it get? Can it go to 1B?
  • Terms
    • Are the founders being reasonable when it comes to valuation and dilution? Min 10% ownership needed for me to make the math work.
  • Time
    • Do I like this founder as a person?
    • Do I want to spend my nights if needed with them?
    • Can I jam with them?

Anupam Mittal (shaadi dot com) has a similiar framework called 4T: TAM, Timing, Team, and Type of business.

More investment theses here.