Eight non-negotiable principles for investing in founder-led startups: team, market problem, alignment with trends, competitive advantage, scalable business model, path to profitability, execution track record, and residual risk. Passion alone doesn't guarantee success.
And so you get all these mad scientists, right? I call them mad scientists. You know, they're inventors and they fall in love with their product and they fall in love with their project. And we want them to do that because to invent something incredible, you just have to— like, this has got to be your world. You've got to love it. Absolutely. But that doesn't mean you're good at running a business. But in the end, like, we've got to invest in the people, right? And when I invest in private equity, it has to pass 8 principles. So number 1 is team and founders. Okay? Very first principle. If it doesn't pass that, I'm just not interested. I'm done. That's it. my time, I move on. The next is all about the market. You know, what problem does this business actually solve in the market and is it actually a problem worth solving? That's number 2. Mm-hmm. Number 3 is alignment with trends. Is this product and business in alignment with market trends and does the market growth support growing revenues and valuations? Number 4, is there a competitive advantage? And when I think of competitive advantage, you know, is it a technology advantage? Is it a brand awareness? Is it a product differentiation? Is it a customer delivery? Number 5 is rock-solid business model. Is it real and is it a scalable business model? Number 6 is a clear pathway roadmap to profitability, right? And so depending, especially depending on what level of business you're investing in, 7 is execution. Has the founder and the team executed on their vision to date and have they achieved their key milestones? Finally, risk, number 8.
