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What to look for when evaluating a start idea
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https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤤" title="Sabberndes Gesicht" aria-label="Emoji: Sabberndes Gesicht"> Product-Market Fit
2.https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌎" title="Amerika auf dem Globus" aria-label="Emoji: Amerika auf dem Globus"> Market size
3.https://abs.twimg.com/emoji/v2/... draggable="false" alt="💥" title="Symbol für eine Kollision" aria-label="Emoji: Symbol für eine Kollision"> Why now
4.https://abs.twimg.com/emoji/v2/... draggable="false" alt="👋" title="Waving hand" aria-label="Emoji: Waving hand"> Distribution
5.https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤝" title="Handschlag" aria-label="Emoji: Handschlag"> Team
6.https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛡️" title="Schild" aria-label="Emoji: Schild"> Moat
7.https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚙️" title="Zahnrad" aria-label="Emoji: Zahnrad"> Business model
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1/ https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤤" title="Sabberndes Gesicht" aria-label="Emoji: Sabberndes Gesicht"> Product-Market Fit
“The only thing that matters is getting to product-market fit.” ー @pmarca
What to look for:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> High cohort retention
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Passionate user feedback
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> High MoM and YoY growth rate
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> A product that’s 10x better than the alternative
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Willingness to pay
“The only thing that matters is getting to product-market fit.” ー @pmarca
What to look for:
2/ https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌎" title="Amerika auf dem Globus" aria-label="Emoji: Amerika auf dem Globus"> Market size
“When a great team meets a lousy market, market wins. When a lousy team meets a great market, market wins. When a great team meets a great market, something special happens.” ー @arachleff
“When a great team meets a lousy market, market wins. When a lousy team meets a great market, market wins. When a great team meets a great market, something special happens.” ー @arachleff
2/ What to look for:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Is there a $1B/year revenue opportunity
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> A customer base desperate for something new
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> A growing customer base being dramatically underserved
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Over $10b TAM
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> If the initial market is small, then large adjacent markets
3/ https://abs.twimg.com/emoji/v2/... draggable="false" alt="💥" title="Symbol für eine Kollision" aria-label="Emoji: Symbol für eine Kollision"> Why now
“The thing that I like to assume is every startup idea’s been tried … So, the question is not, has my idea been tried before? The question is, is it the right time for my idea to happen?” — @m2jr
“The thing that I like to assume is every startup idea’s been tried … So, the question is not, has my idea been tried before? The question is, is it the right time for my idea to happen?” — @m2jr
3/ What to look for:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> An inflection in technology
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> An inflection in adoption of a technology
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> A change in regulation
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> A change in a long-held belief
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> A new distribution channel has opened up
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Costs have fallen or price points risen dramatically
4/ https://abs.twimg.com/emoji/v2/... draggable="false" alt="👋" title="Waving hand" aria-label="Emoji: Waving hand"> Distribution
“Most businesses actually get zero distribution channels to work. Poor distribution — not product — is the number one cause of failure.” — @peterthiel
“Most businesses actually get zero distribution channels to work. Poor distribution — not product — is the number one cause of failure.” — @peterthiel
4/ What to look for:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> A clear growth strategy
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> A unique growth strategy
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Unique access to to the target audience
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> A new untapped distribution channel
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> High LTV/CAC ratio
5/ https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤝" title="Handschlag" aria-label="Emoji: Handschlag"> Team
“If you think about how do you get to the big idea, we call it an Earned Secret. You did something in your past, you tried to solve some hard problem, and you learned something about the world that not a lot of people in the world know.” – @bhorowitz
“If you think about how do you get to the big idea, we call it an Earned Secret. You did something in your past, you tried to solve some hard problem, and you learned something about the world that not a lot of people in the world know.” – @bhorowitz
5/ What to look for:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> A+ founders
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Founders who deeply understand the customers problem
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Founders who have a unique insight or an “earned secret” about the opportunity
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Founders who have worked together before
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Founders who move fast
6/ https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛡️" title="Schild" aria-label="Emoji: Schild"> Moat
“Don’t be the best. Be the only.” — @m2jr
What to look for:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Are there network effects
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Are there economics of scale
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Are there high switching costs
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Is there a potential for a strong brand
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Is there exclusive supply
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Is there proprietary technology
“Don’t be the best. Be the only.” — @m2jr
What to look for:
7/ https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚙️" title="Zahnrad" aria-label="Emoji: Zahnrad"> Business model
“It’s best to invest in pure tech companies. Ask: How much of every dollar invested is going into technology development and how much is going to things like scaling, customer acquisition, subsidizing rides or deliveries, or some physical product.” — @naval
“It’s best to invest in pure tech companies. Ask: How much of every dollar invested is going into technology development and how much is going to things like scaling, customer acquisition, subsidizing rides or deliveries, or some physical product.” — @naval
7/ What to look for:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> High margins
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Low CAC, high LTV
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Short sales cycle
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> High cash flow
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Positive unit economics
8/ For much more, including additional reading on each of the categories, check out the full post. Also, if you have any other things you look for, or NOT look for, I& #39;d love to hear! https://www.lennyrachitsky.com/p/evaluating-a-marketplace-business">https://www.lennyrachitsky.com/p/evaluat...
