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Fundraising & Equity

How Investors Evaluate Startups

Collated by Harry Prabandham

Curated by Rubric Financial

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The Investor Evaluation Framework

  • Team (40% of the decision at early stage): domain expertise, founder-market fit, execution track record, ability to recruit
  • Market (25%): TAM size ($1B+ for VC), market timing, competitive dynamics, regulatory environment
  • Product & Traction (25%): evidence of product-market fit, growth trajectory, retention metrics, customer quality
  • Business Model (10%): unit economics, revenue model, pricing power, scalability — matters more at later stages

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