How We Evaluate Startups: 5 Traits We Look For Before We Invest

If you're a founder raising capital, you're probably wondering:

“What do investors actually look for?”

We get it. Every VC, angel, and accelerator seems to have their own criteria. Some emphasize traction, others worship TAM. Some obsess over tech, others care more about the team. It's noisy.

At our firm, we keep it simple — but rigorous. Whether you’re pitching us next week or simply preparing for future rounds, this article will give you a transparent look into how we assess startups.

Let’s break down the five key traits we evaluate before making an investment.

1. Founder-Market Fit (Not Just Product-Market Fit)

We start with the founder. Not the deck. Not the product.

Why? Because in the early stages, the founder is the most important variable in the entire business. The market will shift. The product will pivot. But the founder? That’s the engine.

We ask:

• Why you?

• What personal edge or insight do you have?

• Are you in love with the problem, or just the idea?

Example: A former airline operations lead building flight delay optimization software. She doesn’t just know the pain point — she lived it. That’s founder-market fit.

2. Early Traction or Momentum (Even If It’s Small)

No, we don’t expect Series A-level revenue from a pre-seed startup. But we do look for signs of traction or momentum:

• Pilot customers

• Strong user engagement

• Waitlists or growth loops

• Letters of intent (LOIs)

• Beta user feedback

We’re not just checking for results—we’re looking for velocity. Is this founder testing fast, learning fast, iterating fast?

If your startup’s not moving, neither are we.

3. Market Size and Timing

A great startup in a tiny market is a lifestyle business. A good startup in a growing, underserved market? That’s a venture case.

We look at:

• TAM/SAM/SOM: How big is the opportunity really?

• Trend alignment: Is this wave just starting, or already cresting?

• Timing: Why now?

One underrated thing we consider: market inefficiencies. Boring industries with bad UX, clunky workflows, or slow incumbents are ripe for disruption—and often overlooked.

4. Defensibility and Moats

We want to know: if you succeed, can someone copy you easily?

We’re not just talking about patents or proprietary tech. Moats come in many forms:

• Network effects

• Data flywheels

• Brand or community loyalty

• Regulatory know-how

• Unique distribution channels

Defensibility isn’t just protection — it’s leverage. It turns momentum into dominance.

5. Founder Psychology and Decision-Making

Yes, this sounds intangible. But it might be the most important trait we evaluate.

We look for:

• Self-awareness (Do you know what you don’t know?)

• Resilience (Can you handle the hard months?)

• Pattern recognition (Do you learn from feedback?)

• Speed of execution (Can you move fast and think clearly?)

Some of the most successful founders we’ve backed weren’t the flashiest. They were the most relentless. They had a quiet internal motor that didn’t quit.

Bonus: “How Do We Help?”

This isn’t a test you pass or fail — it’s a conversation. At the end of every evaluation, we ask ourselves:

“Can we meaningfully help this team?”

Sometimes that means helping them close key hires. Other times it means plugging them into corporate customers, or helping shape the GTM strategy.

If we can't move the needle for you, we’d rather pass — out of respect for your time and ours.

Final Word: We're Not Just Evaluating — We're Investing in People

Early-stage investing is a bet on people. On vision. On adaptability. We invest with conviction, not spreadsheets.

If you're a founder and this framework resonates with how you think, build, and lead — we’d love to hear from you.