29. Angel Best Practices #4b | Evaluation, part 2 (Nick Moran)

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On this episode of The Full Ratchet Nick covers part 4b 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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For today we have part 4b of Angel Investing Best Practices and will be covering the last two major elements within Evaluation…  The Product and The Market.
 
Recall that Evaluation is often considered in three major parts, the team, the product and the market.  On the last edition of best practices, we covered an overview of evaluation and the team.  This episode will complete the evaluation portion with the last two elements.
 
So let’s first start out with the section on the product… in some cases referred to as the idea or technology category.

 

The Product / Idea – “The Horse”

  1. The Stages of Development
  2. The Pre-Sale
  3. Solutions
  4. Revolutionary
  5. Good ideas look Bad
  6. Pain killer vs. the Vitamin Pill
  7. Purchase Friction
  8. EOU
  9. Defensibility

HIDE/SHOW Section 4b: Evaluating The Product

That concludes the section on Product.  Let’s move on to the final evaluation segment, the Market.

 

The Market / Customer – “The Racetrack”

  1. Customer Profile
  2. Sectors / Verticals
  3. Purchase Intent
  4. Customer Behavior
  5. Primary & Secondary Targets
  6. Key Customer Benefit
  7. Passion vs. Obsession
  8. The Adoption Lifecycle
  9. Size / Growth

HIDE/SHOW Section 4b: Evaluating The Market

That will wrap up this episode of best practices.  Head over to the full ratchet for summaries, notes and resources discussed on today’s show.  If there’s something you think we’ve missed or something you’d like to add, please feel free to leave a comment on the post.

I’ve recently discussed w/ some venture practitioners about putting together a weekly feed of the best and most relevant articles in venture capital.  Not just a bunch of links but rather one destination that reads like a newspaper or magazine.  I’m often asked what blogs, sites and newletters I read to stay current and as discussed on episode 16 with Erin Griffith, there’s just too many to efficiently subscribe to and filter through every week.  So, I’m considering taking my usual daily process of reviewing the landscape of material and then just selecting the best stuff to put together in an easily readable format.  Imagine ten articles including content from, for example, Fred Wilson, Marc Andreesen, Bill Gurley, Brad Feld, etc…  too many great minds to list here and it takes me a ton of time every week trying to read through and aggregate the good stuff.  So, if this is something that I put together on a weekly basis that you would read, shoot me an e-mail at nick@fullratchet.net.  If there’s a significant enough number of you that would read it, I’ll start putting it together and, if I don’t hear from that many of you I’ll assume it’s not worth putting together.

Okay that’s it for today.  Coming up on next week’s episode we have Joanne Wilson, the one and only Gotham Gal, weighing in on shady and predatory practices of investors toward other investors and startups.  Until then remember to overprepare, choose carefully and invest confidently.  See you next time.

 
   

   

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