What do I have to consider and check, be it to determine a serious value for my own startup or because I want to invest in a startup?
- Market Potential: Assessment of the size and growth potential of the startup’s target market.
- Team quality: Assessment of the experience, skills and commitment of the founding team.
- Business model: Reviewing the profitability and scalability of the startup’s business model.
- Competitive analysis: Analysis of the competitive situation and the startup’s unique selling points.
- Product/Technology: Assessment of the innovative strength and technological strengths of the product or service.
- Financial Condition: Examining the startup’s financial health, including revenue, expenses, and capital requirements.
- Customer base: Analysis of the existing customer base, customer loyalty and growth potential.
- Legal and regulatory aspects: Examination of legal compliance requirements and possible risks.
- Exit strategy: Clarifying the company’s plans for a possible exit, such as an IPO or acquisition.
- Risk assessment: Identification and assessment of risks that could affect the startup and development of strategies to minimize risks.
In addition to these key criteria, each of which could become a killer criterion, the following, more unconventional aspects should also be taken into account and reconsidered during the evaluation. They are often overlooked, but are also important.
- Cultural fit: Check whether the startup’s corporate culture fits your own corporate culture, as this can influence collaboration.
- Availability of Mentors/Networks: The ability to access experienced mentors or valuable networks can significantly impact the success of a startup.
- Customer Feedback: Insight into customer feedback and the startup’s ability to respond and improve.
- Willingness to change: The founding team’s flexibility to adapt to changing conditions and develop new strategies.
- Sustainability and social responsibility: Considering environmental impact and social responsibility can impact a startup’s reputation and long-term viability.