Imagine if someone asked “would you invest in this company?” Your answer is going to be similar. With a few additions.
Here’s the checklist I would follow:
A) Has the CEO built a business before?
This is not always reliable (Mark Zuckerberg or Larry Page hadn’t built businesses before) but there’s an interesting stat: 85 percent of startups fail. If the CEO has built and sold a startup before, then the odds go down to 25 percent. So you might as well have the statistics on your side.
B) Does the company have good funding?
By good funding I mean two things:
Enough money to last at least a year. And, by the way, this is an important thing to note: if the company has six months or fewer worth of funding then they are already out of business. Which is why “A” above is so important....