Seed Stage Investing Framework
Simple, but powerful tool to evaluate early stage investment opportunities.
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1. Team
Evaluate the strength of founding team. Consider (1) founding team skillset, (2) ability to tell a story and sell, and (3) founder-market fit.
2. Problem
Evaluate the strength of problem. Consider (1) approach to problem discovery, (2) how painful the problem is for the target segment, (3) approach to stress testing the problem.
3. Market Opportunity
Evaluate the market opportunity. Consider (1) market size, (2) competitive landscape, (3) timing.
4. Technology
Evaluate the strength of the technology. Consider (1) deep tech vs. applied tech, (2) value proof points, (3) intellectual property.
5. Risk
Evaluate deal risk. Consider (1) execution risk, (2) technical risk, (3) switching cost.