I didn't see any topics about this here on PH.
Please, share insights and tips from investors about what they look for in startups and the due diligence process.
This is a really complicated matter that requires lots of details and analysis and cant be analyzed in this forum.
However in my experience from multiple viewpoints, investors, be it angel investors, venture capitals, strategic funds etc is that they nowadays look for products or services that solve a real-world problem and have a large addressable market.
That is because the market is saturated with lots of similar ideas and concepts and there is no market for all of them.
Look at what happened with AI powered companies. I used to register over 400 such startups and few months later most of them has either ceased operations or pivoted.
Another thing they examine is the realistic and achievable financial projections which should make sense. Inflated numbers wont cut it.
The team is also important. Be sure to have a stellar bio for the team with preferably a track record.
Equally important is a clear and viable business model than needs to be presented. Its one thing to have a product and another to have a way of monetizing it that actually makes sense and solves a real need.
Perhaps the product is solid but the way is presented wont bring any customers or wont be packaged as something that can be useful. But one of its features may actually be a gamechanger and the company should focus to market this.
As mentioned above, this is just a small synopsis of some of the points that investors look at. Team and business model are crucial as I have found out in the last 4 months.
Hope this helps
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