2000 pitch decks in 2 months

This is about investing in startups: companies designed to grow faster than regular companies. I believe most investors have the mindset of finding flaws in startups — reasons for why they will fail. That is an efficient method for tackling many applications and, truthfully, we had to apply it many times — but I don’t think it is the right mindset to find unicorns. Instead, shift your thinking into finding evidence that the startup will succeed. Try to imagine, with optimism, what needs to be done for the idea to become a billion-(dollar/impact) company.

While not always practical due to time constraints, I believe this paradigm greatly reduces the risks of passing on amazing opportunities. In practicality, think about how a startup fulfills factors on this list — not how it lacks them. But enough introduction, let us jump into the 20 attributes to evaluate a startup.

For all you busy folks, but if you want the full picture, scroll a bit further.

• Dream team — does the team have a competitive advantage running the startup?

• Impact — if the startup succeeds, is the world a better place?

• Potential — is the market big enough to house a unicorn?

• Defensibility — is it easy to defend the business against competitors?

• Scalability — can the business be easily scaled?

• Clarity — can the founders clearly describe what they are doing?

• A well-told story — does the startup have a compelling story?

• Traction — what kind of traction does the startup have?

• Go to market — will they bring their solution to customers in a cost-effective way?

• Making money — will they make money in a smart way?

• Traction — what kind of traction does the startup have?

• Winner takes all — can the startup thrive if it doesn’t win?

• Industry — which industry rules exist?

• Competitors — what is the competitive landscape like?

• Transparency — are they transparent with information so that you can make an informed decision?

• Investor fit — are you a good fit for the startup?

• Prior investments — have other people already invested in the startups.

• Red flags — is there anything suspicious?

• Gut feeling — what does your tummy say about this investment opportunity?

• Portfolio management — how does investing in this startup affect the bigger picture?

• Overall impression — have the founders put in the work?

Insights

Dream team

Any successful entrepreneur or investor will tell you that the team is everything when it comes to building a company. But how do you efficiently determine the quality of a team?

Previous entrepreneurial and working experiences, university, and level of education are good quality indicators. But it is not enough that the team is good on paper.

The team has to be the right one for the task. Ask yourself if the team has a competitive advantage in launching the startup. If not, why not bet on someone else? Unless it’s a very specific area, other people are likely also trying to solve it.

Furthermore, the founding team should ideally have at least one person with industry knowledge who knows how to put the solution into existence. Because at some point the founders have to stop raising money and actually build their solution. I would also like to highlight the importance of diversity. Diverse teams perform better on average, it is impactful, and it can be a way to attract free attention.

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