During deal flow / sourcing, there are many ways to simplify how you evaluate (or pass fast). It’s more about how you get the top of funnel though. Better the ‘top’ the less filtering you have to do. Understand what DD you can productively do at different startup stages. - Early it is just the team (Can’t do DD on nothing) - Later it is mostly traction (especially if you can change team, but this is getting PE) Scale DD to check size and stage. Fancy ‘methodologies’ are overrated at early. Focus on “are they far smarter than I am?” So you write the check and sit back. At later, the same can apply… Tiger paid Bain more than $100 million a year to research investments and it didn’t go well!
Founders cannot always be people who worked together and know each other well. Clearly, if you are not a serial founder, you will be forming your team for the very first time.
Oh my god thank you Angela ma'am u gave a lot of wisdom and I can't sleep tonight. Such a lot of information to me at least
VERY INSIGHTFUL
very insightful !
love it
Insightful, but I think the CAC to CLV figures were transposed.
Or am I missing something?
one question. Can you use a simplified DD process to evaluate SU during deal flow and sourcing? any methodology you would like to share?
During deal flow / sourcing, there are many ways to simplify how you evaluate (or pass fast). It’s more about how you get the top of funnel though. Better the ‘top’ the less filtering you have to do.
Understand what DD you can productively do at different startup stages.
- Early it is just the team (Can’t do DD on nothing)
- Later it is mostly traction (especially if you can change team, but this is getting PE)
Scale DD to check size and stage.
Fancy ‘methodologies’ are overrated at early. Focus on “are they far smarter than I am?” So you write the check and sit back.
At later, the same can apply… Tiger paid Bain more than $100 million a year to research investments and it didn’t go well!
Founders cannot always be people who worked together and know each other well. Clearly, if you are not a serial founder, you will be forming your team for the very first time.