Suggested Investment Criteria:
- Excellent product market fit (the product needs to be highly appealing to its intended audience)
- Excellent ability to acquire clients, partners, and team members to grow
- Excellent management team and reasonable equity structure to align incentives
- Reasonable valuation/terms
- Reasonable upside: 100x+ potential for very early stage companies and 10-50x for later stages
- Excellent probability of traction and capturing significant market share
- Strong business references
- Desire/passion to focus on the business rather than on other interests
- Reasonable skin in the game
- The company must have reasonable odds of generating a competitive advantage over time (eg. knowledge advantage, IP, network effects)
- Aligned incentives with the investor
- Historical track record of success with other companies/projects/employers
- The founder must consider feedback and be open to suggestions; however, the founder must have great judgement and ultimately decide what is in the company’s best interest.
