When investing in startups, understanding how the startup plans to use the money from the funding round is an important component of due diligence. An investor probably wants to know the money will be used wisely to help scale and … Continue reading
due diligence
One of the first challenges for a startup is acquiring customers. Once customers have been acquired, a new challenge emerges: retaining them. For investors, understanding how a startup manages customer retention is an important metric to consider. In this blog, … Continue reading
Developing Your Investment Thesis An investment thesis, or a concise key framework from which to make investment decisions, is important for any investor to develop. It can serve as a measuring stick to compare potential opportunities against during the due … Continue reading
While startups may claim that they have found product-market fit, how can investors actually tell if good product-market fit has been found? How can investors differentiate genuine need from a temporary spike in viral interest from a founder’s well-intentioned optimism? … Continue reading
It’s difficult to be an expert in everything. Therefore, private market investors may come across investment opportunities that are outside their expertise or industry knowledge, especially in the case of innovative sectors like blockchain, next-generation battery tech, biotech, or aviation. … Continue reading
What Are TAM, SAM, and SOM? Metrics commonly referenced by early-stage startups include Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and Serviceable Obtainable Market (SOM). While these metrics may help provide insight into a startup’s potential market size, investors … Continue reading
Learn More About Follow On Investment in Subsequent Funding Rounds Follow on investments are most commonly associated with institutional investments from venture capital or private equity firms. However, the same concept can be relevant to individual investors, deciding whether or … Continue reading
Due Diligence Is a Critical Step for Venture Capital Investing For private market investors, conducting thorough due diligence is an important step of the investment process. By researching a startup to gain a holistic understanding of the company’s past performance, … Continue reading
For early-stage startups, assessing the founding team is one part of the due diligence process. While the product and market are important, the founding team’s composition and capabilities to scale, pivot, and even fail can provide investors with additional insight. … Continue reading
A Moat Is Essential to Startup Defensibility When conducting due diligence, assessing a startup involves more than just looking at its current situation, historical financials, and future plans. One important component of due diligence is assessing a startup’s defensibility—does it … Continue reading
