How to Evaluate Startup Ideas

#growth #startup
https://www.youtube.com/watch?v=DOtCl5PU8F0

How can I predict if an investor will like my idea?

Startup is the product that grows very-very quickly. Otherwise it is just a company / small business (nothing wrong with that). The best investors think how the idea can become successful and then pitches it back.

A startup idea is a hypothesis

Startup idea consists of 3 parts: problem, solution, insight.

The problem

You have to explain the initial conditions.
The problem should be:

1. Popular. Many people should have the problem.
2. Growing.
3. Urgent.
4. Expensive to solve.
5. Mandatory.
6. Frequent.

You want to have at least 1 of the points. The more the better. The problem should give people a lot of opportunities to convert.

B = M + A + T

Behavior, Motivation, Ability, Trigger.

The solution

Description of the experiment that you are going to run in this conditions.
Only one advice: don't start here.

The insight

The explanation why this experiment will be successful.
What are the unfair advantages? Why will you win and grow quickly?
There are 5 types of unfair advantages, you want to have at least 1:

1. Founders
   • Are you 1 of 10 people in the world who can solve it? Are you a super expert?
2. Market
   • Is it growing 20% a year?
   • If it is the only advantage then it is bad. It is nice to have it in addition.
3. Product
   • Is your product 10x better then other products?
4. Acquisition
   • $0
   • If you become popular there will be many competitors.
   • You want to find the way to grow for free.
5. Monopoly
   • Boolean.
   • If your company grows is it more difficult for you to be defeated by competitors?

Beliefs

Threshold belief

Can they even build it?

Miracle belief

Are there evidence that if you can build it then it will work?