When the last investment committee was held, we spent most of our time discussing the results of an in-depth evaluation of one of our startups. That means more immersion, curious details, complicated questions, and points that 90% of investors miss in analysis.
We can't share notes or specific hints about a project. But we can share some of the questions we ask. They're worth asking when you do an analysis of a startup you're considering for early-stage investment.
1️⃣ When was the project founded?
Analyze when the startup incorporated and launched. How much has the team achieved since it started? When have there been periods of "down time", and why? If the company is more than 5 years old and has not generated any revenue, be concerned, just as you would be with a startup that launched yesterday and claims to have serious cash flow.
2️⃣ How are funds distributed within the startup?
Distributing investor money is always at the CEO/founder's discretion, but it's a metric worth analyzing. We regularly come across teams that allocate most of the money to C-level salaries.
3️⃣ When was the last project update?
The latest website version, apps, latest pitch deck, tokenomics version, and whitepaper-how old are these files? If it's been a year or more since the team's last update, it's a logical question to ask - is the project even alive?
4️⃣ Is the token on the market?
The question is specific and depends on the stage of the project. But for seed and later stages, it is often relevant.
5️⃣ Is the project's blockchain disclosed?
At least it should be open and easy to analyze. As a general rule, the less data and documentation a project withholds, the more transparent it is 👌
We can't share notes or specific hints about a project. But we can share some of the questions we ask. They're worth asking when you do an analysis of a startup you're considering for early-stage investment.
1️⃣ When was the project founded?
Analyze when the startup incorporated and launched. How much has the team achieved since it started? When have there been periods of "down time", and why? If the company is more than 5 years old and has not generated any revenue, be concerned, just as you would be with a startup that launched yesterday and claims to have serious cash flow.
2️⃣ How are funds distributed within the startup?
Distributing investor money is always at the CEO/founder's discretion, but it's a metric worth analyzing. We regularly come across teams that allocate most of the money to C-level salaries.
3️⃣ When was the last project update?
The latest website version, apps, latest pitch deck, tokenomics version, and whitepaper-how old are these files? If it's been a year or more since the team's last update, it's a logical question to ask - is the project even alive?
4️⃣ Is the token on the market?
The question is specific and depends on the stage of the project. But for seed and later stages, it is often relevant.
5️⃣ Is the project's blockchain disclosed?
At least it should be open and easy to analyze. As a general rule, the less data and documentation a project withholds, the more transparent it is 👌