Thanks for the kind words and super happy to be here.
We are Market first i.e. we are looking for large fast growing markets ($1B+) that we think can be exploited & scaled with technology
Founding teams without a technical founder are a deal breaker for us. It’s very hard to get your product right in it’s first iteration and our initial investment is to give founders enough runway (6+ months) to 100% focus on their business - outsourcing development will be a big drain on the limited capital resources that an early stage team has at this point.
We want founders that have known each other for a while and worked together professionally for a least 6 months — Would I also be excited to join this company if I was looking to join this startup in Dec 2015. Another thing I look out for is if I am learning something new during the conversation and I actually do due diligence on the idea, market by asking the founders questions about their assumptions. We are also looking for “edge” i.e. Why is this team better suited to solve this problem than anybody else in the market
For Problems, we are looking for painkillers not vitamins i.e. is this a problem top 3 problem for customers in their target market and can you capture the value you create by solving this problem — this typically means that you have a clear revenue model because customers are going to pay you for the solution.
We also like to think about distribution, how do the founders currently acquire users and plan to acquire users. Most founders make distribution an afterthought but we know that a good enough product with killer distribution will beat an amazing product with no/poor distribution. There are loads of great products on the internet that we’ve never heard of because the founders weren’t able to figure out distribution.
Since we are looking at Pre-traction startups, here’s how we qualitatively access startups
* Are we impressed with the amount of work they have done since starting?
* Have they built an MVP and if so how long did it take?
* Are they moving faster than their competitors?
* If they don't get into Microtraction - will they continue working on this company?
* Are they dependent on investment to move forward