A VC Fund takes 3 Risks while deciding to invest in a startup idea.
1. Product Risk: Is the product good enough to solve an existing problem efficiently
2. Team Risk: Does the Founding Team have executional capability to scale
3. Market Risk: Is the market promising enough to deliver a 100x return on the investment
Leave pitch desks aside, an in-depth understanding of these 3 factors is possibly the most essential part of building a working, scalable business model.
