The 4 Ms of Evaluating Startups

Doing my usual routine of waking up early and checking my favorite tech/startup platforms, I came across this great post via AlleyWatch – one of my favorite NYC based startup/technology news platforms. The post, by George Deeb, a partner at Red Rocket VCs, discusses the 4 important ‘Ms’ to look for when evaluating startups. I’ve gone ahead and copied the important pieces below, to read the full post – click here.

1. Market – The market assessment comes down to a look at the startup’s industry and competition.

2. Model – The model assessment comes down to two things:  the overall business model and the unit economic model.  In terms of the business model, how does the company plan to make money?

3. Management – The management assessment has several variables.  How experienced are the founders in this industry?  How experienced are they in building startups?

4. Momentum – Investors gravitate towards more than anything is the speed of customer adoption.

I thought this was a great post for entrepreneurs and startup founders. George’s post is informing and gives good insight from a VC’s perspective. All 4 Ms, are necessary in order to successfully grow your business. I don’t think you can sacrifice one over the other. A balance is needed in order to sustain your startup’s life.

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