Whenever any Investor evaluates a startup then they focus on these criteria.. 1. A team with relevant experience is super important- their past working experience, educational qualifications, etc. 2. Next is the market opportunity- how big is your market? How did you determine this market size? TAM, SAM, SOM analysis 3. Competitor Analysis- SWOT analysis, PESTLE analysis. 4. Traction- information on product stage, pilot customers, paying customers 5. USP- business highly scalable or not, sustainability of the business model, etc. 6. Financial Forecast: assumptions considered are realistic or not- this is a challenging part, clear path to monetization, Unit Economics data- CAC, LTV, LTV: CAC ratio, CAC payback time, Gross Margin, growth rate, etc. 7. Deal Information- how much are you raising? SAFE note/ convertible note/ Priced Round, Current Captable status, etc. 8. Exit Strategy: at least 3X Return on Investment, Merger & Acquisition Plan if any, etc. Image Credit: Eva Dobrzanska and FounderCatalyst
Download the medial app to read full posts, comements and news.