Reza Satchu breaks down choosing a startup with two questions: will it win, and is it right for you. Evaluate the team, market size, unit economics, and runway. Then check for cultural fit, mentors who'll invest in your growth, and whether you'll learn something that matters.
Chapters
This one's for the joiners. You need to think about two critical questions as you determine which startup to join. So the first key question is, is this an attractive startup? Is this one that's going to win? And there you need to look at the team, the market and the business model, right? Is the team a group of people that are committed to the business? They're going to make things happen with limited resources and with imperfect information. Ideally, you want a market that's massive and that has real tailwinds behind it. And then you want a business model that is extraordinarily attractive, right? One that has a strong customer value proposition, that's solving a real problem. You want to use some of the tools that we've taught in the class around LTV to CAC ratios. And you want to be able to see a strategy or multiple go to market strategies and monetization routes for the business. Finally, you want a business that has enough cash to get to the next inflection point. The second key thing that you want to look for is your fit, your personal fit with the actual startup. Is there a strong cultural fit? Do you ideally feel passionately about the problem that the business is solving? Are there people there that truly care about you and that are going to mentor you? And is there this thing called optionality? Is there optionality for you where you can learn a tremendous amount such that perhaps you'll found the next business?
