Checklist for investing in a startup

Post from David Cumming’s blog, original content from Paul Singh, 500Startups

  • Product solves a problem for a specific target customer
  • Capital-efficient businesses – operational @ <$1M funding
  • Primarily internet-based distribution – search, social, mobile, location
  • Simple revenue models – transactions, subscriptions, or affiliate
  • Functional prototype before investment (or previous success)
  • Small but measurable usage – some customers, early revenue
  • Small but cross-functional team – engineer, design/UX, marketing

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