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.
- Most important, especially the founder.
- Is the future they are articulating clear?
- Can they bring in a strong culture that brings customers?)
- What have they built so far?
- Have they figured out cac?
- Got any partnerships?
- Crossed regulatory hurdles?
- 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?
- Are the founders being reasonable when it comes to valuation and dilution? Min 10% ownership needed for me to make the math work.
- 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.