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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