Answer
Apr 05, 2021 - 09:02 AM
-----------
Here’s our framework (and acronym) for how we make due diligence decisions: IMPAC(T)2
-
Investment Terms — What are the terms of this round? Are there any commitments or notable investors? How has the company financed itself to date, and how much runway does it have left
-
Market — How big is the market the company seeks to capture? In what direction is that market heading? Does the go-to-market make sense?
-
Product — What is the product’s core use case? How is the UX? How was the product developed? What is in the product roadmap, and how will that drive rapid adoption, stickiness, and virality?
-
Angle — What is the company’s core competitive advantage? What discontinuity in the market is the company leveraging? How will this advantage endure through expected changes in the market?
-
Crowdfundability — Does the company have a consumer angle? Does it have the community, user base, and marketing budget necessary to drive a successful campaign? Is the company’s mission aligned with Republic’s?
-
Traction and Business Model — How does or how will the company monetize? What sort of market validation and growth (users, revenue, retention, etc.) has the company seen since launch?
-
Team — Does the team have compelling and complementary experience that indicate they will be able to deliver on their goals? Are the founders serial entrepreneurs, ex-corporate MBAs, or deep industry experts? Are they hustlers with no ego?
Add New Comment