27. Angel Best Practices #4a | Evaluation, part 1 (Nick Moran)

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On this episode of The Full Ratchet Nick covers part 4a of Best Practices for Angel Investing including:

  1. Full Ratchet PodcastOverview of Seed Investing
  2. Developing an Angel Investor Strategy
  3. Identifying startups:  Deal-flow
  4. Evaluation & picking startups
    • Overview
    • The Team
    • The Product
    • The Market
  5. Structuring the Deal

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Welcome back for our fourth segment in best practices, called:  “How to Win”…  Evaluating and choosing startups to invest in.
 
This topic is broken into four items.  On this episode we will cover the high-level considerations when evaluating startups and also the first category of the three-prongs of evaluation, which is “The Team.”  On the next episode we will be addressing the remaining two items in Evaluation, including The Product and The Market.
 
It’s a bit of a lengthier episode than normal as I will be covering two sets of ten best practices…  but bear w/ me as the content on Evaluation, while involved, is maybe the most critical element.  No matter what an investor does, if they choose startups poorly, nothing else matters.

 

The first, high-level category on evaluation, has ten items.  They are:

 

Overview of Evaluation

  1. Jockeys, Horses & Racetracks
  2. Enthusiasm
  3. NDAs
  4. The Pitch
  5. Scale
  6. Schemes
  7. The Exit
  8. Contingencies
  9. Burn Rates
  10. Metrics

HIDE/SHOW Section 4a: Overview of Evaluation

Now that we have addressed the high-level evaluation items, we will move on to the three major sub-components, starting with the “Team” ie. The Founders.  This sub-section also includes 10 items:

 

The Team / The Founders – “The Jockey”

  1. Relationship
  2. “The Sell”
  3. Composition
  4. Outliers
  5. Emotional IQ
  6. Profile
  7. Salary
  8. Pivots
  9. Past Behavior
  10. Product-Founder Fit

HIDE/SHOW Section 4a: Evaluating The Team / The Founders

 
   

   

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