Evaluation framework for early stage-early growth stage firms

  1. Does the team have an ability to create a fantastic product which market needs or doesn’t know it needs but will lap it up nonetheless (This is a super category). How is the team-product-fit, the team-market-fit? What are the ‘soft’ characteristics of the founders? How are the core team dynamics? Is the founder a capable product person and a leader? What are the risks we are taking here?
  2. Does the team understand the Go to Market strategy and its importance? How well do they know their market, potential customers, customer segmentation, pricing & business model, plan & channels through which to reach and sell to customers / acquire users? There are early signs in terms of increasing user references and ready buyers. Or not.
  1. Product risk. Identified as a combination of technical product risk and operational product risk. With the aim to understand the degree of complexity involved in delivering the product or service in question. Is it even a viable product which can be delivered at scale?
  2. Market risk. With the aim to understand whether there is clear demand for the product or service being offered. Looking at the competition, market dynamics, timing, traction, user feedback. Who are the buyers here? Is that a big enough set? Or a potential big enough set given the product benefits.

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