Thursday, December 8, 2016

Check the Founder’s Profile carefully; Startup Investing Tip

When it comes to make most out of a startup investment, you must explore all the areas which can help minimizing the risk associated with the startup. One such area is “Founder’s profile”.

Drill into the track record of the founders; and it will certainly give you some hints about how successful the startup can be.

While doing appropriate due diligence, looking at the people behind the company is the most critical factor, especially for early stage companies. This is mainly due to the fact that products need to be iterated several times until they are able to find where they fit in the market.

As Jim Collins writes in his book “From Good To Great”, “it is all about having the right people sitting in the right seat”. As you explore the founders’ profiles, you will find the right direction to move.

In order to scan founders’ profiles effectively, focus on their background story, i.e. previous ventures, companies they have worked for, education etc. Also look into the business networking sites, like Linkedin to check what recommendations they have received!

Did you know that diversifying your investments can reduce the risk?

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