Company Scoring Form
The Big Question: can this investment return at least 100-150% of the fund?
Team
Consider:
- Solo founder or high-functioning co-founding team? (even equity split? Have "been in trenches" together before?)
- Does the CEO have previous founding experience? Was it successful ($_M and good return to investors)?
- Does the founding team have all the relevant skills to execute on the opportunity? (technology, commercial, domain expertise)
- Can the founding team recruit the first ~10 product development staff from their own network?
- Founders' charisma, presentation, and communication skills
- Do the founders have a "halo effect" that allows them to get to top investors?
- Does the team surround themselves with tier-1, relevant advisors and have a "growth" mentality?
- Can we get quality "off sheet" reference checks on them?
- Do the founders have experience managing high performing teams for top tier organizations?
Is this the right core team to make this a $1B company? *
Positives:
Your answer
Negatives:
Your answer
Market Opportunity
Consider:
- Is the initial TAM the company is operating in large enough to generate $100M/yr revenue? How fast is it growing?
- Is the 2nd order market the company is operating in large enough and is expanding to there reasonably achievable?
- Does the product/service solve an acute pain for customers? For B2B: is this a top 2-3 "hair on fire" priority?
- Barriers to entry: deep tech, IP, people/data network effects, economies of scale, gov policy, complex value chain?
- How strong are the suppliers and buyers, and how might this impact industry profitability? (ie who will be commoditized)
- How strong are existing substitutes and is this 10X better on a dimension end customers care about?
- How fierce will direct competition be?
- Likely rate of adoption
- Business model: how validated is it? How high quality is revenue? (ex. recurring revenue w/ high margins)
How easily can the market opportunity sustain a $1B company? *
Positives:
Your answer
Negatives:
Your answer
Strategy and planning
Consider:
- How realistic is the operating plan presented by the company?
- Does the company have a realistic, validated go to market strategy?
- Has the company correctly identified the next 5 key hires?
- Capital efficiency: can we afford to own 5%+ post-series C?
- Have we identified likely acquirers and how strong is the business case for this?
- Given financing, can the company realistically get to a large round at a meaningful uptick to valuation?
How viable is the company's strategy in capitalizing on the market opportunity quickly? *
Positives:
Your answer
Negatives:
Your answer
Intangibles
Any "special magic" / "gut instinct"?
Positives:
Your answer
Negatives:
Your answer
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